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Beyond 80C: How to Save Tax After the 1.5 Lakh Limit
"My 80C is full. Now what?"
Every year, millions of Indians rush to fill their Section 80C limit of ₹1.5 Lakhs using EPF, PPF, or ELSS Funds. But once that bucket is full, they stop.
Big Mistake. The Income Tax Act has several other "hidden buckets" that you can use to lower your tax liability legally.
The Secret Sections
1. Section 80CCD(1B) - The NPS Boost
You can invest an additional ₹50,000 in the National Pension System (NPS). This is over and above the ₹1.5L limit.
- Potential Tax Saved: ₹15,600 (in the 30% bracket).
2. Section 80D - Health Insurance
Premiums paid for your health insurance are deductible.
- Self & Family: Up to ₹25,000.
- Parents (Senior Citizens): Additional ₹50,000.
- Total Possible Deduction: ₹75,000.
3. Section 24(b) - Home Loan Interest
If you have a home loan, the interest you pay is deductible up to ₹2 Lakhs per year under the Old Regime.
Stack Them Up
By combining these, you can reduce your taxable income by ₹4-5 Lakhs, not just ₹1.5 Lakhs.
Are you utilizing all these sections? Use our optimizer to find out.