Tax savings under sub-clauses of Section 80

There are many investment options available under various sections of the Income Tax Act that allow to taxpayers to save taxes. The most popular and most utilised section is Section 80C of the IT Act, which has an upper limit of Rs 1.50 lakh. Apart from Section 80C, there are other sections that facilitate savings in taxes, but the investors may not be aware of these sections. So here is a quick look at the other sections.

Section 80D: Under this section, the taxpayer can claim maximum deduction of Rs 35,000 in a financial year. You can claim deduction of Rs 15,000 paid towards premium of your medical insurance policy and also claim an additional Rs 15,000 for premium paid for medical insurance of your parents below 60 years of age and Rs 20,000 for parents above 60 years of age.

Section 80DD: This section allows a taxpayer to claim deduction for medical expenses incurred towards treatment of a handicapped dependent person. The maximum amount that can be claimed as deduction under this section in a financial year is Rs 50,000. However, in the case of treatment of severe handicap, the maximum amount that can be claimed as deduction is Rs 1 lakh.

Section 80CCD: The contribution made by the employer to the National Pension Scheme can be claimed as deduction under this section. The maximum amount that can be claimed as deduction is capped at 10% of the employee’s salary or Rs 1 lakh, whichever is lower.

Section 80DDB: Under this section, a taxpayer can claim deduction for house rent paid by him/her to the landlord. The maximum amount of house rent that can be claimed as deduction is Rs 60,000 in a financial year.

Section 80RRB: A taxpayer who has received royalty income or patent fees can claim deduction under this section. The maximum amount that can be claimed for deduction is Rs 3 lakh in a financial year.