Tax Planning

How to Save Tax Beyond 80C

Most taxpayers stop at the ₹1.5 Lakh limit. Smart investors go further. Here are 5 perfectly legal sections to reduce your taxable income.

By Editorial Team • Updated: Jan 2026 • Advanced Guide

1. National Pension System (Sec 80CCD 1B)

This is the most popular additional deduction.
Benefit: You can claim an extra ₹50,000 over and above the ₹1.5L 80C limit by investing in NPS Tier 1.

Tax Saved: If you are in the 30% slab, you save ₹15,600 instantly.

2. Health Insurance (Sec 80D)

Buying health insurance protects your wealth and saves tax.

Category Deduction Limit
Self & Family (< 60 years) ₹25,000
Parents (> 60 years) ₹50,000
Maximum Total ₹75,000 (Self + Parents)

Includes ₹5,000 for preventive health checkups.

3. Home Loan Interest (Sec 24b)

If you occupy your own house, the interest paid on your home loan is deductible up to ₹2 Lakhs per year.
Note: This is separate from the Principal repayment which falls under 80C.

4. Education Loan (Sec 80E)

The entire interest paid on an education loan (for self, spouse, or children) is tax-deductible for up to 8 years. There is no upper limit on the amount.

5. Savings Account Interest (Sec 80TTA)

Don't pay tax on small interest income!
Interest earned on Savings Accounts (Bank/Post Office) is tax-free up to ₹10,000 per year for individuals below 60. For Senior Citizens (Sec 80TTB), this limit is ₹50,000 (includes FD interest).