How to Save Income Tax in India Beyond Section 80C
Ten legal ways to reduce your income tax in India beyond the ₹1.5 lakh 80C limit — NPS, HRA, home loan interest, health insurance and more.
Section 80C caps deductions at ₹1.5 lakh, and most salaried people exhaust it through EPF, PPF and insurance alone. But the Old Tax Regime offers several deductions beyond 80C that can save tens of thousands more. Here are the most useful ones — all applicable under the Old Regime.
1. NPS — Extra ₹50,000 under 80CCD(1B)
This is the most valuable deduction beyond 80C. An additional ₹50,000 invested in NPS qualifies under Section 80CCD(1B), over and above the ₹1.5 lakh 80C limit. For someone in the 30% bracket, that saves ₹15,600 in tax a year.
Project your NPS corpus: NPS Calculator → https://calculatordesk.in/nps-calculator
2. HRA Exemption under Section 10(13A)
If you live in rented accommodation and receive HRA, a large part of it is exempt. The exemption is the least of: actual HRA, 50% of basic (metro) or 40% (non-metro), and rent paid minus 10% of basic. For metro-based professionals this is often the single biggest tax saver.
Compute your exemption: HRA Calculator → https://calculatordesk.in/hra-calculator
3. Home Loan Interest under Section 24(b)
Interest paid on a home loan for a self-occupied property is deductible up to ₹2 lakh a year under Section 24(b). Combined with the ₹1.5 lakh principal repayment under 80C, a home loan can shelter up to ₹3.5 lakh of income.
4. Health Insurance under Section 80D
- Up to ₹25,000 for premiums for self, spouse and children
- Additional ₹25,000 for parents' health insurance (₹50,000 if parents are senior citizens)
- Within these, ₹5,000 is allowed for preventive health check-ups
5–10. Other Deductions Worth Claiming
Most of these apply only under the Old Regime. The New Regime forgoes nearly all of them in exchange for lower slab rates — so before claiming, check which regime is actually cheaper for you.
| Section | For | Limit |
|---|---|---|
| 80E | Education loan interest | No limit (8 years) |
| 80EEB | Electric vehicle loan interest | ₹1.5 lakh |
| 80G | Donations to eligible charities | 50% or 100% of donation |
| 80TTA | Savings account interest | ₹10,000 |
| 80TTB | Interest income (senior citizens) | ₹50,000 |
| 80DDB | Treatment of specified diseases | Up to ₹1 lakh |
Compare regimes with your deductions: Income Tax Calculator → https://calculatordesk.in/income-tax-calculator
Bottom Line
Beyond the ₹1.5 lakh 80C limit, the biggest levers are NPS (extra ₹50,000 under 80CCD(1B)), HRA, and home loan interest (up to ₹2 lakh). Stack these with 80D health insurance and you can shelter well over ₹5 lakh of income under the Old Regime. But always run both regimes side by side — for many people with few deductions, the New Regime still wins.
Frequently Asked Questions
How can I save tax beyond the ₹1.5 lakh 80C limit?
The main options beyond 80C are: an extra ₹50,000 in NPS under 80CCD(1B), HRA exemption under 10(13A), home loan interest up to ₹2 lakh under 24(b), and health insurance under 80D. These are available under the Old Tax Regime.
Are these deductions available in the new tax regime?
Mostly no. The New Regime disallows 80C, 80D, HRA and home loan interest on self-occupied property. It mainly allows the standard deduction and employer NPS contribution under 80CCD(2). Compare both regimes before deciding.
What is the extra NPS tax benefit?
Section 80CCD(1B) allows an additional deduction of up to ₹50,000 for NPS contributions, over and above the ₹1.5 lakh 80C limit. In the 30% bracket this saves about ₹15,600 in tax each year.