Tax Saving Investments Other Than Section 80C For Senior Citizens

What other investments save taxes besides the 80C? 

Other than 80C, there are various tax-saving measures that fall under the following acts. ** ## 

  • The 80TTA limit for interest income from savings account deposits is $10,000. 

Under Section 80TTA, the total amount of interest earned from savings account deposits is deductible. However, this deduction from taxable income is only allowed up to £10,000 each year. If you maintain numerous savings accounts in different banks, the whole cumulative interest is calculated and is taxed under ‘income from other sources’. ** ##

  • The amount of interest paid on a student loan 

Section 80E Limit: There is no cap 

It should be emphasised, nevertheless, that these exemptions are only given for the first 8 years of debt repayment. Any additional money used to pay the interest burden is taxed. 

Education loans that qualify for these deductions must be acquired in the name of the specific person and may be used to pay for the higher education costs of the person, their spouse, or their children. ** ##

  1. Section 80D Cap on Premium Payment for Health Insurance Policies: Subject to Certain Conditions ** ##

Eligibility Limitation 

25,000 for personal and family health insurance (spouse and children under 18). 

myself, my family, and my parents 

₹25,000 + ₹25,000) = ₹50,000 

Parents over 60 years senior citizen health insurance of age plus self and family (under 60): 25,000 + 50,000 = 75,000 

For myself, my family (including those over 60), and my elderly parents 

₹50,000 + ₹50,000) = ₹1,00,000

  • The Section 24(b) limit on the interest component of home loans is two lakh. 

Under this clause, interest payments on a mortgage may be excluded from income tax calculations. Providing the construction is finished within five years of the loan tenure, a maximum of 2 Lakh can be claimed as a tax rebate on the interest rate if the house is bought for residential use. **

  • Interest Component Paid Towards First-Time Home-Buyers’ Mortgage Loans 

Section 80EEA Limit: 50,000 in excess of Section 24 benefits (b) 

If the property value is less than 45 lakh, first-time house purchasers are eligible for additional interest benefits on home loan EMIs in the amount of 50,000 over Section 24(b). 

However, in order to qualify for a tax credit on the whole amount of income used for EMI payments under Section 80EEA, no prior property should be recorded in the applicant’s name while applying for a house loan. **

  • Life Insurance Plan Maturity Sum Assured 

Limitation under Section 10(10D): Total maturity amount 

Under Section 10, a tax credit can be claimed for the total sum assured that is paid out at the maturity of a life insurance policy or the untimely passing away of an insured individual (10D). 

If, however, the death benefit is received after April 1, 2012, and the entire value premium costs are less than the full sum assured, the death benefit is not subject to tax calculations. 

If the insurance was purchased before April 1, 2012, the premium costs must be lower than 20% of the total sum insured to qualify for section 10 exemptions (10D). **

  • Home Rent Allowance Offered Under Salary Break-Up Part – 10(13A) Limit – Specified Conditions 

If your pay breakdown includes an HRA component, this section of the Income Tax Act applies to tax benefits under the HRA. **

50% of the annual earnings of people who live in big cities 

40% of one’s annual earnings for people residing outside of major cities 

Paid annual rent less 10% of base income plus DA

A health insurance premium calculator is a tool you may use online to determine the amount of coverage required based on your needs.

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.