These are the sections that offer you provisions for tax deductions apart from section 80C.
Section 80CCC
You are eligible for tax deduction under section 80CCC if:
- You have invested a sum from your taxable income in a pension plan offered by an insurer, such as the renewal of a pension policy.
- You must ensure that these payments comply with the provisions of Section 10(23AAB), which relates to pension schemes maintained by insurers.
- Taxes are levied on the pension income you receive from the policy. While contributions to the pension fund are deductible, any pension or annuity payments you receive are taxable.
- If you discontinue the policy, the surrender value or the amount withdrawn will be subject to tax as per the prevailing tax laws.
Section 80CCD
Under this section, you will be eligible for tax benefits if:
- You have invested in the National Pension System (NPS), and your contributions are eligible for tax deductions.
- Under Section 80CCD(1), you can claim a deduction of up to 10% of your basic salary plus dearness allowance (DA) (or 20% of gross income for self-employed individuals). However, the total deduction under Section 80C, 80CCC, and 80CCD(1) should not exceed Rs. 1.5 lakhs.
- Section 80CCD(1B) offers an additional deduction of up to Rs. 50,000 on contributions to NPS, which is over and above the Rs. 1.5 lakh limit.
- Section 80CCD(2) allows employees to claim a deduction on their employer’s contributions to NPS, up to 10% of basic salary plus DA (or 14% for Central Government employees).
- You can combine deductions under Section 80C and Section 80CCD(1B) to avail a maximum tax deduction of Rs. 2 lakhs.
Section 80D
If you are a member of a Hindu Undivided Family (HUF), you are eligible for tax deductions under this section in the following ways.
Health insurance premiums:
- If you have paid health insurance premiums for yourself, your spouse, or children, you are eligible for a tax deduction of up to Rs. 25,000.
- If the health insurance is for your parents who are above 60 years old, you can claim an additional deduction of up to Rs. 50,000. Parents can also claim this benefit independently for their own insurance premiums if they are paying themselves.
Central Government Health Scheme (CGHS):
- You can claim a tax deduction of up to Rs. 25,000 for contributions made to the Central Government Health Scheme (CGHS) or any other notified equivalent scheme. This deduction is applicable only for self and family (spouse, dependent children).
Preventive health check-ups:
- You can claim up to Rs. 5,000 within the overall limit of Rs. 25,000 or Rs. 50,000 (depending on the case) for preventive health check-ups. This amount can be paid in cash.
Other medical expenses:
- While Section 80D covers preventive health check-ups, it does not mention eligibility for deductions on medical purchases like hearing aids or contact lenses. These are not covered under Section 80D unless related to a specific health insurance plan.
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