Popular Tax Saving Options (other than 80C included) for 2023

Checkout some of the Popular Indian ways to Save on Your Income Tax Returns in 2023. These are recommended for Salaried Employees, Senior Citizens, and Small Businesses.

by FighterMan Updated: 02 Jan, 2023, 18:19 IST
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Thinking on How to Save on Income Tax in 2023? Well, we have got some Investment Ideas which can be beneficial for Tax Deductions. Also, other than ITR 80C Saving Schemes are included. This guide is for Salaried Professionals, Individual Small-scale Businesses, Senior Citizens, and Freelancers.

Tax Saving Options for 2023

Some of the common questions that come across Tax Saving enthusiasts include the following:-

  • Lock-in period

  • Tax Deduction types

  • How Does Income Tax Section 80 Work?

  • When to start Investments for Tax Savings?

All these questions will be answered in this article so let’s move on.

Firstly, let’s have a look at the Investment options for Saving under ITR Section 80C. These can Save you upto ₹2,00,000 of Taxes in 2023.

PPF (Public Provident Fund)

You can Invest from ₹500-₹1,50,000 in PPF in a year. This is a 15 year long-term tax saving investment plan. You cannot withdraw an amount before 7 years so make a note. You can avail tax deduction for PPF deposits under section 80C of ITR. Also, you don’t need to pay tax on Interest earned under Section 10. The Interest rate here is around 7%.

NPS (National Pension Scheme)

If you age between 18-70 then you can Invest via NPS. This is the best official way to get retirement ready in the future. Also, saves via tax deductions upto ₹2 lakhs under section 80C and 80CCD. Here, you can earn Interest in the range of 9%-12%.

ULIP (Unit Linked Insurance Plan)

An ULIP helps in long-term investments, tax savings, and getting Life Insurance coverage. Here, you get the flexibility to pay premiums. Moreover, you can withdraw some amount at any time. Additionally, it suits low-risk investors with many go-to investing options.

ELSS Mutual Funds

ELSS Mutual Funds are great for both tax savings (upto ₹1.5 lakh) and higher returns (15%-20%). The lock-in period here is 3 years. ELSS stands for Equity Linked Savings Scheme.

Life Insurance

You can opt-in for a whole, universal, or term life insurance. The best time to get it is at a younger age as it not only helps in tax savings but also incur lower premiums. It is recommended as the most important Investment option an Indian must have.

Pension Plans: tax saving options for senior citizens

Apart from NPS, there are many pension plans available from leading firms such as Max Life, SBI Life, LIC, ICICI Prudential, and HDFC Life. Tax deductions here are covered under section 80CCC.

SCSS (senior citizen saving scheme)

If there are seniors (above 60 yrs) in your family then SCSS is a safe tax saving and Investment option. The current ROI here is 8% as the government recently hiked rates. This is a 5-yr plan which can be extended to max 8 years.

NSC (national savings certificate)

NSC is a low-risk and good tax saving Investment option. Rate of Interest is around 7%. This scheme suits best to low and middle income groups. There is a 5-yr and 10-yr Investment option here.

FD (fixed deposits)

You will find FDs in almost all Indian households making it a popular choice among the middle class public. Here, the lock-in period is 5 years and tax savings are limited to ₹1,50,000 per year.

Tax Saving Options other than 80C for Salaried 2022-23

Now, let’s have a look at some of the other Income tax saving options for salaried people which can come in handy when the exemption limit is exceeded.

Tax Saving options (other than 80C)

Under ITR Section

Saving Account Interest

80TTA

Education Loan Interest

80E

Health Insurance policy premium / Senior Citizen medical expenses

80D

Home Loan Interest

24(b) / 80EEA (1st time buyers)

Home Rent exemption (for salaried employees)

10(13A)

Home Rent exemption (if not mentioned in your salary breakup)

80GG

Charitable Institution donations

80G

Scientific Research and Rural Development donations

80GGA

Political Parties or Electoral Trust donations

80GGC

Medical Expenses of disabled

80DD / 80U (fixed deduction based on severity of the disability)

Medical Ailments

80DDB

Resident Senior Citizens Interest on deposits

TTB

These were some of the popular ways to save on Income Tax in 2023. However, it is recommended to consult your financial advisor to get the best options based on your income, job/business, preferred risk, and other factors.

Top Comments
Deal Newbie Deal Newbie
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income tax is a day robbery by the govt without giving any justification to the working crowd.

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Deal Baba Deal Baba
When was it removed, 80c is there in old regime.
Did i miss something?
Deal Lieutenant Deal Lieutenant
kartikxxx wrote:
When was it removed, 80c is there in old regime.
Did i miss something?

Whats the point of old regime when we get lower tax rate with new regime 

Deal Newbie Deal Newbie

Does the stamp duty amount for a property bought in the current FY comes under 80C or for that matter, under any exemption category?

Deal Cadet Deal Cadet
prtchaudhary6179 wrote:

Does the stamp duty amount for a property bought in the current FY comes under 80C or for that matter, under any exemption category?

Yes. It comes under 80C.
Deal Cadet Deal Cadet
Expand
Jigglypuff wrote:

Whats the point of old regime when we get lower tax rate with new regime 

There are situations when one can get maximum tax benefit under old regime with investments.
Cool Cool
Expand
Jigglypuff wrote:

Whats the point of old regime when we get lower tax rate with new regime 

For the 30% tax bracket, the old regime is the best. The new tax regime is good for income under 10 lakhs.
Deal Cadet Deal Cadet
Expand
Jigglypuff wrote:

Whats the point of old regime when we get lower tax rate with new regime 

Is sticking to old regime worth it if your are having an income of say 10 lakh+
Deal Cadet Deal Cadet
Any idea under which section school fees can be used
Deal Newbie Deal Newbie
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Jkriz wrote:
Is sticking to old regime worth it if your are having an income of say 10 lakh+

Yes stick with old regime and additionally you can compare between the two in tax portals when filing or you can check a CA if you are using one
Deal Cadet Deal Cadet
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PirateOfDeals wrote:
For the 30% tax bracket, the old regime is the best. The new tax regime is good for income under 10 lakhs.
Nope - Even old regime is best for income under 10lac if you're utilizing 80C section limit completely
If not opting for any deduction then new regime is good
Cool Cool
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Neo53 wrote:
Nope - Even old regime is best for income under 10lac if you're utilizing 80C section limit completely
If not opting for any deduction then new regime is good
If a person is not utilizing 80c then the new regime is good.
Cool Cool
Best_Deal_Hunter wrote:
How to save tax for salary above 10 lakhs ?
I know only - 80c - 1.5 lakhs + 50k nps 80d - medical insurance 10% of basic Nps - through employer Meal vouchers - employer provided Fuel allowance - employer provided + Vehicle purchase/lease plan - employer provided + HRA, Standard deduction.
Helpful Helpful
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PirateOfDeals wrote:
If a person is not utilizing 80c then the new regime is good.
anyone with income above 5 lacs will utilize it. 
Deal Newbie Deal Newbie

income tax is a day robbery by the govt without giving any justification to the working crowd.

Deal Newbie Deal Newbie
jp295m wrote:

income tax is a day robbery by the govt without giving any justification to the working crowd.

You get to live in society  so you have to pay tax on it.

it is justified enough. 
Deal Newbie Deal Newbie
jp295m wrote:

income tax is a day robbery by the govt without giving any justification to the working crowd.

I don't agree with you rates can be on a higher side but it's a must for a country economy to sustain. Well if want to live in a jungle where you hunt and eat with no other rules and regulations then it's fine. And if as of today income taxes would be stoped then the gap Between rich and poor will increase further in my opinion. A country with no income tax are economies with highly dependent on natural resources like oil. The revenues obtained from these oil rich countries stabilise their economies to a degree that they can do without collecting income tax from their residents. 


Deal Lieutenant Deal Lieutenant
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Jkriz wrote:
Is sticking to old regime worth it if your are having an income of say 10 lakh+

a person earning 40 LPA. lets say.

Not eligible for HRA  since (https://www.policybazaar.com/income-tax/save-in...)

  • The actual rent paid by the employee for the residence each month Minus (-) 10% of their salary. is negative

He has put 1.5 lakhs in PPF. yearly.

He has no home loan.

He has no anyother investement

he has no investement in NPS or VPF

Now you can check the new regime offers the lesser net tax payment. so 10 lakhs plus logic is flawed

@PirateOfDeals

Deal Lieutenant Deal Lieutenant
PirateOfDeals wrote:

@Jigglypuff

80C,NPS etc. is savings only. If you are not opting it then you are giving it to govt in form of tax. Lower tax is a myth.

Check yourself - 

https://groww.in/blog/old-vs-new-tax-regime-whi...

my point is despite opting for 80c ppf , the tax is higher on the old regime , you can compare. I dont think even additional 50k from NPS will make a diff to the example i shared above. new regime still will win

For 40LPA old vs new ( total deduction 2 laks( 1.5 ppf + 0.5 sd)

if the total dedcution is more than 2.5 laks then only it make sense to opt for old regime for a 40 lakh income

image

image

image

Annual Income of Rs.15,00,000 (with exemption)
Annual Income 1500000

Exemptions u/s 80C -150000
u/s 80CCD(1B) -50000
u/s 80D -75000
Taxable Income -1225000
Old Regime New Regime
Income tax slab Tax Rate Tax (Rs.) Tax Rate Tax (Rs.)
Up to Rs.2,50,000 0 0 0 0
250001 – 500000 5 12500 5 12500
500001 – 750000 20 50000 10 25000
750001 – 1000000 20 50000 15 37500
1000001 – 1250000 30 75000 20 50000
1250001 – 1500000 0 0 25 62500
Sum 187500 187500
Health and education cess 4 7500 4 7500
Tax payable 1,95,000 1,95,000
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