Following are some of the popular tax saving options under various sections:
Section 80C: This is the most popular option, and following investments can be used for tax deduction for up to Rs.1.5 Lakhs.
- ELSS Funds
- National Savings Certificate
- Fixed Deposit
- National Pension Scheme
- Unit Linked Insurance Schemes
- Sukanya Samriddhi Yojana
Section 80CCD (1B): Under this section, National Pension Scheme becomes eligible for additional tax deduction of Rs. 50,000 apart from Section 80C of the Income Tax Act.
Section 80D: Health Insurance premiums for up to Rs. 60,000.
Section 80DD: Expenses on a handicapped person for up to Rs. 1.25 Lakhs.
Section 80DDB: Treatment of special illnesses for up to Rs. 80,000
Section 80E: Education loan interest payment
Section 80EE: Home loan interest payment for up to Rs. 50,000
Section 80G: Donation to approved charitable institutes.
Section 80GG: Rent paid by employees not having HRA
Section 80GGB and 80GGC: Contributions made to political parties and individuals
Section 80TTA: Savings account interest for up to Rs. 10,000
Section 80U: Handicapped taxpayers can claim a tax deduction for up to Rs. 1.25 Lakhs.
Section 80RRB: Royalty or patent income for up to Rs. 3 Lakhs
Section 24B: If you have a home loan, you will be tax exempted on your interest payment for up to Rs. 2 Lakhs.
Additional Reading: Investments with Tax Benefits