4. Options beyond 80C

If you have exhausted your limit of one lakh under section 80C, here are a few more options like Section 80D which is deduction of 15,000 for medical insurance of self, spouse and dependent children and 20,000 for medical insurance of parents above 65 years.

Section 80CCF which is deduction of 20,000, in addition to the 1 lakh under 80C, for investments in notified infrastructure bonds. Section 80G- Donations to specified funds or charitable institutions.

5. Gift Money to Your Non Working Spouse for Investments

Now youngsters with a non working spouse can increase their tax saving umbrella if they invest through their spouse. If any individual gifts money to his wife or wife gifts money to her husband and the money is invested, the taxman clubs the earnings with the income of the earning member for the year.

 The clubbing of income also happens at the first level and any money reinvested from earnings of any investments are considered to be money earned by the non working spouse which does not seek any further clubbing.