An individual can save tax under 80C up to Rs 1 lakh.
When “tax savings” is considered for most of the people it means life insurance, PPF, NSC, and equity-linked savings scheme, that qualify for tax deduction under Section 80 C of the Income-Tax Act.
However, there are other lesser known avenues that offer additional tax breaks to individuals. They are not widely discussed as they involve special situations in life such as having a special dependent, paying rent to parents, owning a house in another city, and so on. Here is a small list you could explore.
- Paying rent to your parents (In case living in a parental house)
- Renting and Home loan in two different locations (HRA with Home Loan)
- Set off of Capital Loss Against Capital Gain
- Charity under Section 80G
- Contribution to a recognized political party
- Home loan (Principal and Intrest)
- School fees of children (Tuition part only)
- Health Insurance (for self, suppose kid(s) and parents)
- Medical expenses of ill Dependent
- Medical expenses incurred on disability of Special dependents
- and more…
All above points are well explained at taxguru.in you can visit the site and learn more about this.