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
25 9251

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.

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FighterMan aka Sahil Hitesh Ajmera is a 4+ Years Experienced Content Writer with 1.2M+ User Sessions, 486.41% max growth, and 1000+ Articles across Best Products, OTT, Telecom, Online Shopping, Finance, Credit Cards, Saving Tips, Deals & Offers, more!
25 Comments  |  
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Pro DealBaba Pro DealBaba
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When was it removed, 80c is there in old regime.
Did i miss something?
Helpful Helpful
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Whats the point of old regime when we get lower tax rate with new regime 

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Deal Newbie Deal Newbie
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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
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Yes. It comes under 80C.
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Spearhead Spearhead
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Good post
Deal Cadet Deal Cadet
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Any idea under which section school fees can be used
Deal Newbie Deal Newbie
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80c
Deal Lieutenant Deal Lieutenant
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How to save tax for salary above 10 lakhs ?
Comrade Comrade
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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.
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.

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

it is justified enough. 
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Helpful Helpful
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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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