How to save more than ₹1.5 lakh in taxes

In short:

  • Medical insurance premium is tax-deductible up to ₹25,000
  • Interest paid on education loan is tax-deductible in full
  • Interest paid on home loan is tax-deductible for first-time owners
  • Interest paid on housing loan is tax-deductible
  • Donations made to certain organizations and political parties are tax-deductible

At length:

There is more to tax saving than the ₹1.5 lakh limit that comes under Section 80C and investing in ELSS funds. There are many other expenses that you make that can reduce your taxable income as well.

If you have medical insurance (and you should), then you can claim tax-saving deductions on up to ₹25,000 on the premium that you pay. You can claim further deductions if you also pay the premium for your parent’s’ medical insurance.

If you are repaying an education loan, you can claim deductions on the interest paid on the loan. The loan can be for yourself, your spouse or your children. The entire interest paid can be claimed as a deduction from your taxable income. There is also a deduction available on home loan interest for first-time owners.

You can also claim deduction on the housing loan interest you pay. The amount you can claim is up to ₹2 lakh if you are occupying the property. The deduction will be on the full amount if the property is not occupied by you.

There are certain tax-saving deductions that can be claimed on donations made to certain charitable organizations and political parties. These are some of the ways to save taxes for FY2016-17, but these expenses have to be made before 31 March 2017 for you to be able to claim deductions on them.

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