Hi Anu,
TDS (Tax Deducted at Source) is a mechanism through which the government collects income tax. If your annual salary is Rs. 900,000, your employer is likely deducting TDS from your salary. However, there are legal ways to optimize your tax liability and potentially reduce the TDS deducted. Here are some tips:
Invest in Tax-Saving Instruments:
Utilize deductions available under Section 80C by investing in instruments such as Public Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificate (NSC), Tax-saving Fixed Deposits, and Equity-Linked Savings Schemes (ELSS).
Make sure your investments collectively do not exceed the limit of Rs. 1.5 lakh under Section 80C.
Health Insurance Premiums:
Invest in a health insurance plan and claim deductions under Section 80D. You can claim deductions for premiums paid for yourself, spouse, children, and parents.
Home Loan Interest:
If you have a home loan, the interest paid on the loan is eligible for deduction under Section 24(b). This can help reduce your taxable income.
HRA (House Rent Allowance):
If you are living in a rented accommodation, you can claim HRA exemptions.
Standard Deduction:
Make sure to claim the standard deduction available for salaried individuals, which was introduced in the Budget 2018.
Tax Benefits on NPS:
Contributions to the National Pension Scheme (NPS) are eligible for an additional deduction of up to Rs. 50,000 under Section 80CCD(1B).
Leave Travel Allowance (LTA):
If your employer provides LTA, ensure you submit proof of travel expenses to claim this exemption.
Submit Investment Proofs:
Provide all necessary investment proofs and declarations to your employer in a timely manner so that they can adjust TDS accordingly.
Tax Consultation:
Consult with a tax expert to understand your specific situation and get personalized advice on tax-saving options. and It's important to note that while these strategies can help optimize your tax liability, you should always ensure compliance with tax laws. If you're unsure about your tax planning, it's advisable to consult with a tax professional who can provide guidance based on your specific financial situation.
Thanks,
From India, Bangalore
163TDS (Tax Deducted at Source) is a mechanism through which the government collects income tax. If your annual salary is Rs. 900,000, your employer is likely deducting TDS from your salary. However, there are legal ways to optimize your tax liability and potentially reduce the TDS deducted. Here are some tips:
Invest in Tax-Saving Instruments:
Utilize deductions available under Section 80C by investing in instruments such as Public Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificate (NSC), Tax-saving Fixed Deposits, and Equity-Linked Savings Schemes (ELSS).
Make sure your investments collectively do not exceed the limit of Rs. 1.5 lakh under Section 80C.
Health Insurance Premiums:
Invest in a health insurance plan and claim deductions under Section 80D. You can claim deductions for premiums paid for yourself, spouse, children, and parents.
Home Loan Interest:
If you have a home loan, the interest paid on the loan is eligible for deduction under Section 24(b). This can help reduce your taxable income.
HRA (House Rent Allowance):
If you are living in a rented accommodation, you can claim HRA exemptions.
Standard Deduction:
Make sure to claim the standard deduction available for salaried individuals, which was introduced in the Budget 2018.
Tax Benefits on NPS:
Contributions to the National Pension Scheme (NPS) are eligible for an additional deduction of up to Rs. 50,000 under Section 80CCD(1B).
Leave Travel Allowance (LTA):
If your employer provides LTA, ensure you submit proof of travel expenses to claim this exemption.
Submit Investment Proofs:
Provide all necessary investment proofs and declarations to your employer in a timely manner so that they can adjust TDS accordingly.
Tax Consultation:
Consult with a tax expert to understand your specific situation and get personalized advice on tax-saving options. and It's important to note that while these strategies can help optimize your tax liability, you should always ensure compliance with tax laws. If you're unsure about your tax planning, it's advisable to consult with a tax professional who can provide guidance based on your specific financial situation.
Thanks,
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary-Note.doc
SALARY SHEET CALCULATION.xls