Section 80C of the Income Tax Act of 1961 is one of the most popular tax saving options that allows for deductions up to Rs 1.5 lakh per annum. PPF contributions, five-year term deposits and ELSS schemes are among the list of tax-free instruments under this section. However, there are various other tax-saving options available that taxpayers may avail benefit from. Here are a few:

1. Section 80E: Exemption of interest on education loan

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Under section 80E, income spent to meet the interest component of education loans is not taxable. There is no limit on the deduction amount. However, it has to be noted that such a waiver is available for a maximum of 8 years or till the interest is paid. Any income spent beyond this time duration is taxable. It can be utilized to meet the higher education charges of either self, children or spouse.

These tax deductions can be availed by individuals only. Hindu Undivided Families (HUF) and companies can not avail of these tax exemptions.

2. Section 80TTA -Interest income generated from savings account deposits

Under section 80TTA, a deduction of up to Rs 10,000 per year on savings account interest is allowed. However, if one maintains multiple savings accounts in different banks, total cumulative interest is considered and is taxed under ‘income from other sources’.

If interest income exceeds Rs 10,000 in a year, depending upon aggregate annual income, the excess amount over the cap is taxed at rates. This tax deduction can be availed by individuals and HUF. Besides, NRIs may also avail of deduction under Section 80TTA.

Also read- Income tax return filing: What is ITR 1 Sahaj form? Check eligibility and steps to file online

3. Section 80D- Deduction for Medical & Health Insurance

Under section 80D, money spent on medical and health insurance can be claimed. One is allowed to claim a tax deduction of up to Rs 25,000 on medical insurance premiums per financial year. The deduction limit of Rs 50,000 is allowed in the case of senior citizens. The limit applies to the premium paid towards health insurance purchased for self, spouse, children
and parents.

Medical expenditure incurred on senior citizens (aged 60 years or above) health is not covered under any health insurance scheme.

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