Section 80D allows taxpayers to claim deductions against medical/health insurance
Individuals can save on tax under Section 80D on payments towards medical/health insurance policies.
One can take health insurance for self/spouse/dependent children and claim exemption of up to Rs. 25,000. If the taxpayer's parents are senior citizens, then the limit is Rs. 50,000 (according to the Budget 2018). If the taxpayer and their parents are senior citizens, then the limit is Rs. 1,00,000.
Tax benefits on home loan interest, HRA, and house rent
Under Section 24, individuals can claim tax benefits of upto Rs. 2,00,000 on home loan interest. If the property is rented out, there is no limit for claiming the deduction.
Those getting House Rent Allowance (HRA) can claim deduction too; there's no upper limit for HRA deduction. However, those who pay rent can claim only a deduction of upto Rs. 60,000pa under Section 80GG.
One can get tax benefit by donating money to charity
Under Section 80G, taxpayers can save on tax by claiming deductions on donations made to charitable organizations.
Though there is no upper limit given, there are certain limits set depending on the type of organization one is donating to. For example, 80G provides 50-100% exemption for government relief fund donations and 50% deduction up to 10% of one's income for donations to registered NGOs.
#5: Save Rs. 10,000 by keeping money in bank account
Under the IT Act, individuals also get the benefit of tax-free interest on savings accounts; under Section 80TTA, interest on savings accounts is tax-free up to Rs. 10,000/year. The limit for senior citizens (for FD/savings account interest) is Rs. 50,000 under Section 80TTB.