Think beyond Section 80C to save on taxes
If you have incurred expenses on medical treatment of self or your ‘dependents’, you can claim a deduction of up to R40,000 or the actual amount paid, whichever is less, under the section 80DDB. For a senior citizen, the maximum exempted amount is R60,000 or the amount actually paid for medical expenses. To claim deduction, you need to submit a certificate from a doctor working in Government hospital.
The interest paid on loan taken for pursuing higher education of self or any dependant is exempted from tax under section 80E. An education loan can be taken for wife, children and minors for whom you are the legal guardian. This deduction is applicable for a period of 8 years or till the interest is paid, whichever is earlier. The deduction is only approved for higher studies, which means full time graduate or postgraduate courses in engineering, management or applied sciences, pure sciences including mathematics or statistics. However, from 2011 onwards, the scope of this exemption has been extended to cover all fields of studies including vocational studies after completing the Senior Secondary examination or equivalent. No exemption is applicable on part-time courses.
One often donates a certain amount on philanthropic grounds to help the destitute. Such an amount can be donated to trusts, charitable institutions, approved educational institutions and qualifies for deduction under Section 80G. The exemptions can be up to 50% or 100% of the donations made. Funds in which the donations are eligible for tax
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