Tax Savings for FY 2023-24: 5 alternative options beyond Section 80C

Tax savings for FY 2023-24: When it comes to saving on income tax, most salaried individuals turn to the familiar territory of Section 80C. Offering a deduction limit of Rs 1.5 lakh annually under the Income-tax Act, 1961, it's undoubtedly popular.

But what if you've already used this limit? Fear not, as there are other avenues to explore for tax savings in the current financial year. As per an ET report, here are five options worth considering:

Remember, you need to invest by March 31, 2024, to save on income tax for the 2023-24 financial year.

National Pension Scheme (NPS) contributionsYou can invest in the National Pension Scheme (NPS) to receive a tax deduction of Rs 50,000 under Section 80CCD. This is in addition to the Section 80C limit.

Health insurance premiumsPaying health insurance premiums for yourself or your family can lead to tax deductions.

Under Section 80D, you can receive a tax deduction of up to Rs 25,000 for paying the health insurance premium for yourself, your spouse, and your children. If you pay health insurance premiums for your parents (below 60 years), you can claim a tax deduction of up to Rs 25,000. For senior citizen parents, the tax deduction can go up to Rs 50,000 under Section 80D in a financial year.

Preventive health check-upsYou can receive a tax deduction for preventive health check-ups, which qualifies under Section 80D. Every taxpayer can claim a maximum of Rs 5,000 for such check-ups, within the overall limit of Section 80D.

Interest on savings accountsSection 80TTA provides a tax deduction of up to Rs 10,000 in a financial year to individuals and HUFs (excluding those covered under Section 80TTB) on the interest earned from savings accounts opened with a bank, post office, or cooperative society.

Donations to approved funds and institutionsIf you've donated to a fund recognized by the central government under Section 80G, you qualify for a deduction on the donated amount. Note that this deduction should not exceed 10% of your adjusted gross total income.

This deduction also applies to donations made for the renovation of temples, mosques, and churches approved by the central government.

If your donations were directed towards institutions engaged in scientific research or approved universities or colleges (under sections 35(1)(ii), 35(1)(iii), 35CCA, 35CCB) recognised by the government, they're eligible for deduction under Section 80GGA.