TAX Saving Tips
- 2125
- 55
-
- Last Comment
Hi guys, tax season is here and I just want to know how you guys are saving tax:
I think the following are some of the ways:
1. House rent allowance
2. LTA (is there any limit here?)
3. 1.5 lakhs from 80C – PPF/LIC/Tax saving mutual funds, NPS
4. 50,000 from 80CCD NPS
5. 25,000 from Medical Insurance Premium
Are we missing any thing more?
- Sort By
is it for people without health insurance also?
LTA is some percentage of basic, but our employer has capped it to 1L
Also NPS by employer contribution can reduce taxable income by 10% basic (with no cap)
Interest on Education loan (i think no max cap)
Also home loan comes under same 80c section
1. Thanks, so I think I should ask my employer to restructure my existing salary package so that they contribute 10% of basic to NPS?
2. LTA is already included within our salary package or is it additional money?
80C bechara kahan-kahan jaaye, Max cap to 1.5Lac hai 
And NPS is also under 80C?
Nps is considered under 80C which is upto 1.5lakhs + addl. 50,000 under 80CCD
But what I did is I already have enough 80C claims to touch 1.5lakhs
So I made NPS contribution of 50k this year that can be covered under 80CCD
There should be 10% tax slab after 5% in old structure
One more Avenue. You can claim both HRA and home loan interest benefit considering the flat is in different city. Also I have seen ppl not claiming the HRA fully. you can also claim donations to NGO under 80D.
There are lots of tax deductible which are specific to employees,eg:- nps,super annuation ,sodexo.which would be beneficial to employees..But most of the employers,including mine,not providing these benefits,eventhough it’s beneficial for them.
Pissed of paying more tax because of this deduction not available.
Also for those who do not receive HRA, but pay rent, use section 80GG to claim rent expenses of upto 5k per month
Yes.. It can be claimed under 80D only for senior citizens without insurance coverage, plus if it is for the treatment of any specified disease, it can be claimed under section 80DDB. Please revert with your case for any specific query.
If it is some heart issue without insurance then only can it be claimed? please explain more about this. and for non senior citizens no benefit?
Apart from these you can show donation slips where-ever you have donated. Donation to political parties gives you 100% reduction from taxable salary whereas to NGO will give depending upon NGO registration (upto 50%).
Means if you donate 50k to Political party then you will get 50k rebate in taxable salary and if you donate 50k to any NGO then you will get at max 25k rebate from taxable income.
Political party donation is best if you are in 30% slab
You can easily give 20% of your income as party donation without issues
And get payment slip, also you’ll get back 90% amount in cash, that you cannot put back in bank, just spend it where ever u can
Child tution fee only gives Rs100 exemption 
i believe there is one more section to Save interest on Saving bank account , i believe 80TT, i am paying 30% on my Saving bank interest. is it non taxable till 10k.
Every year bank deducts some tax on interest and while filing ITR , i have to pay 20% more
Yes… to the extent of 10000 per financial year.
sometips to reduce tax in business income ? tax calculated is around 5-6 L.
When you give hike to your employees, Restructure all your employees salary (including yours) such that 10% of basic plus DA is credited to NPS
You can claim that as business expense.
Rs 5,000 – preventive health checkups for self, spouse, children or parents [Sec 80D – Over & above 25,000 & It can be incurred in cash]
P.S. – Standard deduction from Salary – u missed to mention.