You can save income tax by these two expenses:
Cost of treatment from serious disease
Exemption from income tax can be obtained on the cost of treating himself or family members with serious diseases. This facility is only for Resident Indians. Tax exemption under Section 80DDB of Income Tax Act can be claimed for the expenses of treatment of husband, wife, child, parents or siblings.
Also, taking health policy will be very beneficial for you. It will not only save you from hospital bills during treatment, but you also get the benefit of income tax if you pay the premium.
For your family mediclaim you can take advantage of income tax relief on a premium of up to Rs 25,000/-. If you fill your health insurance policy with your 60-year-old parents then you can avail of Rs 25,000/- separately in income tax.
But, in the case of senior citizens, the income tax exemption limit on health policy premium is Rs 50,000/-. If both the taxpayer and his parents are senior citizens, then they can save tax on the premium amount up to Rs 100,000/- of the health policy.
Children’s school tuition fees
If your children attend private school then you can get relief in income tax on the payment of tuition fees for two children. Tax exemption limit is Rs 1.5 lakh per annum under section 80C of the Income Tax Act.
Apart from these two reasons, Life Insurance (LIC), PPF, NSC, SSY or Tax Saving FD also come under Section 80C of the Income Tax Act.