Last-Minute Tax Saving Tips for Individuals
If you earn over ₹2.5 Lakh/year and haven’t saved for tax deductions yet, here are the key last-minute ways to reduce your tax bill:
Section 80C (Up to ₹1.5 Lakh Deduction)
- PPF: 7.1% interest, 15-year lock-in, max ₹1.5 Lakh/year.
- Life Insurance Premiums: Covers self and dependents.
- NSC: ₹7.7% interest, TDS-free, usable as loan collateral.
- 5-Year Tax FDs: Fixed interest, no early withdrawal.
- ELSS: Market-linked, 3-year lock-in, tax-free dividends.
- Pension Plans (80CCC): Qualifies under combined ₹1.5 Lakh limit.
- SCSS: 8.2% interest, quarterly payouts, taxable.
- Home Loan Principal (EMI): Principal repayment qualifies.
- Tuition Fees: For own children.
Section 80D – Medical Insurance
- Up to ₹15 K deduction for self/family; ₹20 K if senior citizen.
- Additional ₹15 K or ₹20 K for parents’ cover.
- Max deduction: ₹40 K annually.
Section 80DDB – Medical Treatment
- Up to ₹40 K deduction for specified illnesses.
- Seniors: up to ₹60 K. Very senior (80+): ₹80 K.
Other Sections
- 80E: Education loan interest (no cap).
- 80EE: First-time home loan interest up to ₹1 Lakh.
- 80TTA: Savings interest up to ₹10 K.
- 80G: Donations (subject to % and cash limit).
- 80GG: Rent paid (limits based on income & HRA).
- 80DD/80U: Disability-related deductions.
- 80GGB/80GGC: Political contributions by companies/individuals.
- 80RRB: Patent royalty up to ₹3 Lakh.
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