Anon
watch_later 03/05/18
I am a salaried employee and working in a company. I am getting good salary and in 30% bracket.
What are the some ways to save income tax, as I am paying almost my 2 months salary as my income tax?
In India salaried employees only pay income tax correctly. Reason being TDS deduction before you get salary in your hand.
Here are some tax saving tricks and tips:
- Utilize full limit under section 80C, if not already exhausted by your PF.
- Take house loan on your name instead of wife or other member to claim benefit under House Property and 80C.
- Invest in schemes like PPF, where deposit is covered under 80C and interest and maturity amount are tax exempted.
- Reduce you CTC by taking food coupons, as food coupons upto Rs. 50 per day are exempted both in hands of employees and employer.
- Reduce your CTC, ask company to lease car and you can purchase it after lease period is over. If you are using or planning to buy a car.
- Buy medical insurance on your name for full family, even for parents.
- Make good use of LTA, submit proofs on time.
- If planning for donations, donate to registered trust where you can claim 80G deductions.
- Invest in National Pension Scheme (NPS), you can reduce your CTC upto portion of employer. This is in addition to limit specified under section 80C and 80CCD(1).
If you have any other tips and tricks, don't forget to answer this.
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