If you thought that the usual life insurance premium, PPF and other instruments under Sec 80C were the only tax benefits that you received in India think again. There are several tax benefits that you receive apart from the usual Sec 80C Benefits. Here are seven of the lesser known ones.
Tax Benefit for Health Insurance
If you have paid an insurance premium for a health policy for yourself, spouse, parents or children you get tax benefits under Sec 80D. You can claim up to Rs 15,000 for you and your family. The limit for senior citizens is Rs 20,000.
Tax Benefit for Interest on Education loan
If you have taken an education loan, you can claim complete tax benefit on the interest paid. Importantly, there is no restriction on limit and the entire interest amount can be claimed under Sec 80E. The amount is only for individuals and not for other assesses.
Tax Exemption For Donations
Donations to eligible institutions qualify for tax rebate under Sec 80G. Do remember that you must get a valid certificate from the institutions where you have donated. Also, it's important the institution quotes its PAN number.
Tax Benefits Even If You Do Not Receive HRA
If you do not receive HRA, you can still claim tax breaks under Sec 80GG. Very few people know of this tax benefit. It's important to note that the individual should not own any house when he claims such a deduction.
Tax Benefit For Donating to Political parties
If you contribute to political parties, you are likely to get tax benefits under SEC 80GGC. So next time you contribute make sure you claIm the tax benefits that are available.
Tax Benefits Under Sec 80U
If a resident Indian is suffering from specified disability like blindness, low vision, mental illness, mental retardation, hearing impairment he or she can claim tax deduction under. In order to claim tax benefits one should be suffering from not less than 40 per cent of the following diseases. The deduction provided is flat Rs. 50,000, irrespective of the expense incurred.
Under Sec 80CCG
Deduction under section 80CCG was introduced a few years back. If you are a first time investor you can claim tax benefits up to Rs 50,000 only if your income is under Rs 10 lakhs for investment in the Rajiv Gandhi Equity Savings Scheme.