All of us do our bit of investments that give us deductions from income and thus help us save taxes. There is so much more that can be done beyond section 80C which a lot of us are not well aware of; Here is a quick synopsis that may serve as a ready reckoner. Though this is not a complete list it can still be used as an initial guideline. We shall try and update this list from time to time.

Before you proceed further understand that there is a cardinal rule of investment: The Rationale behind any investment is “Merit first and tax saving perspective secondary”. Do a post tax comparative analysis of the best investment offering and then decide to deploy money. Do not blindly invest just because you may save some quick money now. You may have to repent for many years later as a result of a bad and hasty decision today.

Here are your options beyond section 80C.

1. Rs. 9600 for conveyance (only for salaried)
2. Rs. 10000 for savings account interest u/s 80TTA
3. House Property Benefits

1. Standard deduction @ 30% on rental income
2. Section 24 – Payment of interest on home loan – limited to Rs. 1.5 lacs
3. Section 24 – Payment of interest on home loan taken for repairs reconstruction etc. – limited to Rs. 30,000
4. Additional benefit under Section 80EE to promote budget housing – Rs. 100,000 for 1st time home buyers (Capping 40 lacs property, 25 lacs loan, for loans sanctioned in FY 13-14)
5. If home is rented out or deemed rented out then – full deduction of interest is possible without any capping
6. Depreciation for self employed (if property is in name of firm) and thus tax saving

Capital Gain Tax Relief

1. Section 54EC – upto 50 lacs of cap gain can be invested in Capital gain bonds

HRA benefits – u/s 10 (13A)

1. Least of (Actual HRA, Actual Rent less 10% of basic & DA, 50% of basic for metro cities / 40% non metro)

Medical Benefits

1. Rs. 15000 for medical costs reimbursements (only for salaried)
2. Section 80D – For self & family – 15,000 – For parents – 20,000 is exempt

i. Preventive Health Check for Rs. 5000 within limit or Rs. 15,000 or 20,000 limit above.

3. Section 80DD – For dependent with disability – Rs. 50,000 (general) to Rs. 100,000 (severe disability)
4. Section 80U – For self (with disability) – Rs. 50,000 (general) to Rs. 100,000 (severe disability)
5. Section 80DDB – For medical treatment of self or dependent – Rs. 40,000 and Rs. 60,000 (for senior citizen)

Donations – 80G

1. 50% of donated value

Higher Education

1. Section 80E – Payment of interest for education loan – No limit

Rajiv Gandhi Equity Scheme – Section 80CCG

1. 50% deduction on investment upto Rs. 50,000 and provided 1st time (specified schemes of) MF or EQ investor (specified list of stocks), income less than 12 lacs

Tax Free Income

1. Dividends from equity shares / MF
2. Tax Free bonds

Indexation Benefits

1. On property, bonds, gold, offshore mutual funds

For self employed

1. Depreciation
2. Profits from partnership companies

Just for sake of completeness: Listed are benefits that can be availed of under section 80C

Options under 80C – All within Rs. 100,000

1. Insurance & Investments

1. Life Insurance premiums (provided cover is 10 times the premium for any policy)
2. Differed Annuity – pension plans
3. Contribution to any provident fund where Provident Funds Act, 1925 applies eg. EPF & PPF
4. Approved Superannuation fund
5. Any other security / scheme as specified by GOI – Eg NPS
6. ELSS of MF
7. Pension fund of MF
8. Fixed Deposit of 5 years plus tenure
9. Postal Deposit of 5 years plus tenure
10. Senior Citizen Savings Scheme

2. Outflows & Expenses

1. Tuition Fees (not donations etc.)
2. Repayment of principal of home loan to all borrowers (i.e. including co-borrowers)