Everyone talks about Section 80C — but what if your tax-saving game could go far beyond it?
Yes, most taxpayers lean on Section 80C to claim deductions through instruments like PPF, ELSS, or life insurance. But, there are several other sections under the Income Tax Act that help them save the tax efficiently.
These legal provisions include deductions for health insurance premiums, education loan interest, electric vehicle loans, donations, and even newer schemes like Agnipath.
If your goal is to make the most of your earnings and legally lower your tax burden, you need to look beyond the obvious. In this article, we’ll show you how to save tax through powerful sections other than 80C — with simple explanations and updated tips that anyone can follow.
Section 80D – Health Insurance Premiums
This section allows deductions for the premiums paid toward health insurance for yourself and your family, including dependent parents. It is available to both salaried and self-employed individuals. You must have a valid health insurance policy (cashless or reimbursement).
How Much Can You Save:
- ₹25,000 for self, spouse, and children.
- Additional ₹25,000 for parents (<60 years) OR ₹50,000 for senior citizen parents.
- Maximum deduction: ₹1,00,000 if both you and your parents are senior citizens.
Example: You pay ₹24,000 for your own family’s health cover and ₹40,000 for your parents (senior citizens). Your total deduction = ₹64,000 under 80D.
Section 80E – Education Loan Interest.
You can claim the full interest paid on an education loan as a deduction — with no upper limit. The individual taxpayers (not HUFs or companies) who took a loan for higher education for themselves, spouse, children, or a student they’re the legal guardian of can claim this deduction.
How Much Can You Save:
- Entire interest amount paid during the year.
- Deduction available for 8 financial years starting from the year you begin repayment.
Example: If you pay ₹45,000 as interest this year on your education loan, you can claim the entire ₹45,000 as a deduction.
Section 80EEB – Electric Vehicle Loan Interest.
This section provides tax benefits on interest paid on loans taken to buy an electric vehicle.
It is for Only individuals (not businesses) who purchased their first electric vehicle and took a loan between April 1, 2019 and March 31, 2023.
How Much Can You Save:
- Up to ₹1.5 lakh per year on the interest paid.
Example: You bought an EV and paid ₹1.2 lakh as interest on the loan this year. You can claim the full ₹1.2 lakh as a deduction.
Section 80G – Donations to Charitable Institutions.
Section 80G provides tax deductions on donations made to certain registered funds, trusts, or charitable institutions.
It is available to all taxpayers — individuals, HUFs, and companies — who donate to approved organizations.
How Much Can You Save:
- Deductions can be 50% or 100%, with or without a qualifying limit, depending on the recipient.
- Donations must be made via cheque, demand draft, or digital mode (cash donations allowed only up to ₹2,000).
Example:
If you donate ₹10,000 to an eligible NGO that qualifies for a 50% deduction, you can claim ₹5,000 as a tax deduction.
Section 80DD – Medical Treatment for a Dependent with Disability.
Section 80DD offers deductions for expenses incurred in caring for a dependent with a disability, including medical treatment, training, or rehabilitation.
It is for resident individuals or HUFs who are caring for a dependent spouse, child, parent, or sibling with a disability.
How Much Can You Save?
- ₹75,000 for dependents with at least 40% disability.
- ₹1,25,000 for severe disability (80% or more).
- No proof of expenses required — fixed deduction.
Example:If your dependent brother has 85% disability and you support him financially, you can claim ₹1,25,000 deduction — regardless of your actual expenses.
Section 80DDB – Treatment of Specified Illnesses.
This section allows tax deductions for medical treatment of specific critical diseases such as cancer, Parkinson’s, chronic kidney failure, etc.
Resident individuals and HUFs who have incurred treatment expenses for themselves or their dependents.
How Much Can You Save?
- Up to ₹40,000 for individuals below 60 years.
- Up to ₹1,00,000 for senior citizens.
- You must obtain a certificate from a specialist doctor.
Example: If your parent (senior citizen) is undergoing treatment for a listed illness and you spend ₹90,000, you can claim the entire amount as a deduction.
Section 80GG – Rent Paid (Without HRA).
If you pay rent but don’t receive House Rent Allowance (HRA) from your employer, you can claim deduction under 80GG.
Salaried and self-employed individuals are not receiving HRA and who live in rented accommodation.
How Much Can You Save:
- Least of the following is deductible:
- ₹5,000 per month (₹60,000 annually)
- 25% of total income
- Rent paid minus 10% of total income
Example: You earn ₹5,00,000 per year and pay ₹8,000/month as rent. You may be eligible to claim around ₹60,000 depending on calculation.
Section 80CCH – Agnipath Scheme (Agniveer Corpus Fund).
Section 80CCH has been introduced to provide a deduction for contributions to the Agniveer Corpus Fund under the Agnipath Scheme.
This applies to individuals who are enrolled as Agniveers under the Agnipath scheme of military recruitment.
How Much Can You Save: The full deduction applies for both your contributions and the government contributions to the Agniveer fund.
Example: If ₹50,000 is contributed to your Agniveer fund, that full amount will be flagged as deductible under 80CCH – again, no limit.
Section 24(b) – Loan Interest on House.
Section 24(b) provides for a deduction on the interest portion of the home loan EMIs. This is claimed by owners of homes who are actually paying interest on an extended loan to purchase, construct or renovate a residential property. The deduction is available under both old and new tax regimes.
How Much Can You Save?
- ₹2,00,000 when the property is self-occupied.
- No cap for rentals (meaning that actual interest paid can be claimed).
Example:If you have paid ₹2.4 lakh in interest for your home loan, and if the house was self-occupied, you would get to claim ₹2 lakh. If, however, it’s a rental, you can take the full installment of ₹2.4 lakh.
Conclusion:
Tax-saving doesn’t end with Section 80C. There are several other smart and legal provisions under the Income Tax Act that can help you reduce your tax burden significantly. From health insurance and education loans to rent and EV financing, using these sections wisely can lead to better savings and smarter financial planning. Now that you know the options — make them work for you.
Disclaimer:
This article is for informational purposes only and does not constitute financial, legal, or tax advice. Tax laws are subject to change, and deductions may vary based on individual eligibility and circumstances. Readers are advised to consult a qualified tax advisor or financial planner before making any tax-saving decisions.