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Possible ways of Saving Tax beyond Section 80C

Updated: Apr 8, 2021

Living an active life requires a stress free working environment and one of the big stress aspect is how to save Income tax. Every year, a person filing ITR i.e. Income Tax Return, Feb-Mar is generally that time of the year when one is required to submit all proofs of investments carried out towards Tax Saving. Incase you have missed out on any of the instruments that can give you the benefit of saving tax as per the permissible limit, do it before submitting your details.

While many focus on Section 80C which is the most used tax-saving section amongst the tax-payers, people should also focus on the other possibilities of saving tax. Section 80C generally provides for investment options whenever one wants to reduce his/her tax liability which is largely through Life insurance premiums, PPF contributions, ELSS schemes, Five-year term deposits, and many other for which one should look into all possibilities for exemption not more than ₹1.5 lakhs in aggregate through Section 80C investments.

But you can add NPS investments (Section 80CCD) to claim an additional ₹50,000, bringing the total available deduction to ₹2 lakhs.

Do you think ₹2 lakhs exemption is sufficient? Are there any further possibilities..