I am working in an IT company, and I am not able to understand the calculated tax deduction (total 100,000 INR in this financial year) based on my salary. I also see that my basic salary is very high with very few tax-exempt components. I raised this issue with my HR, but they insist that this is the best salary structure.
What allowances/reimbursements can be added to save the maximum tax legally? How can I lower the taxable amount? I have already exhausted 80C deductions, fully utilized the home loan interest exemption, and used 10,000 rupees for health insurance.
I have attached my salary structure for your reference. I would appreciate your help.
Thanks
From India, Ghaziabad
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What allowances/reimbursements can be added to save the maximum tax legally? How can I lower the taxable amount? I have already exhausted 80C deductions, fully utilized the home loan interest exemption, and used 10,000 rupees for health insurance.
I have attached my salary structure for your reference. I would appreciate your help.
Thanks
From India, Ghaziabad
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A reference to the latest IT provisions will help you.
Sec 80C limit of savings Rs 150,000 NPS Rs 50,000. How much is the house loan deduction? Are you paying Rs 30,000 tax every month? Your taxable income can be brought down to Rs 800,000 by simple Sec 80C and NPS dedication to the tune of Rs 200,000.
From India, Pune
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3251Sec 80C limit of savings Rs 150,000 NPS Rs 50,000. How much is the house loan deduction? Are you paying Rs 30,000 tax every month? Your taxable income can be brought down to Rs 800,000 by simple Sec 80C and NPS dedication to the tune of Rs 200,000.
From India, Pune
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Thank you very much. How much is the house loan deduction?
>>Principal (80c) 1,50000, interest (24e) 200000 (I have exhausted 80c and 24e already). Are you paying Rs30000 in tax every month?
>>No (computed tax for this financial year is 100000 or 1 lakh). I doubt there are no reimbursements in my salary, which is why the tax calculation is high.
From India, Ghaziabad
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>>Principal (80c) 1,50000, interest (24e) 200000 (I have exhausted 80c and 24e already). Are you paying Rs30000 in tax every month?
>>No (computed tax for this financial year is 100000 or 1 lakh). I doubt there are no reimbursements in my salary, which is why the tax calculation is high.
From India, Ghaziabad
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Is the house on rent or are you staying?
You can open PF, open PPF, or invest in ELSS up to 1.5 lakhs and start an NPS account with a Rs 50,000 deduction which is the maximum authorized.
Your salary will come down to 8L, and with housing deductions, it can come down to 6L at least, putting you in the 20% tax bracket.
From India, Pune
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You can open PF, open PPF, or invest in ELSS up to 1.5 lakhs and start an NPS account with a Rs 50,000 deduction which is the maximum authorized.
Your salary will come down to 8L, and with housing deductions, it can come down to 6L at least, putting you in the 20% tax bracket.
From India, Pune
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@nathrao thanks, for the suggestion. Can you look at my salary structure and suggest some reimbursement to lower down basic salary for least taxable income.
From India, Ghaziabad
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From India, Ghaziabad
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Certainly! Here is the corrected version of the text with proper spelling, grammar, and paragraph formatting:
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Such articles will help you, but look at the latest tax amendments for F/Y 2018-19. A word with your HR will be helpful, and ideas of what your coworkers are doing will be a guide. Remember that salaried people have to declare all their income properly and pay tax. SB a/c interest is taxable, as an example. All your income is recorded, and now with data analytical tools, IT can easily link multiple transactions. So be legally correct and 100% tax compliant.
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I have corrected the spelling and grammar errors and ensured proper paragraph formatting. If you have any more text you need assistance with, feel free to ask!
From India, Pune
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Such articles will help you, but look at the latest tax amendments for F/Y 2018-19. A word with your HR will be helpful, and ideas of what your coworkers are doing will be a guide. Remember that salaried people have to declare all their income properly and pay tax. SB a/c interest is taxable, as an example. All your income is recorded, and now with data analytical tools, IT can easily link multiple transactions. So be legally correct and 100% tax compliant.
---
I have corrected the spelling and grammar errors and ensured proper paragraph formatting. If you have any more text you need assistance with, feel free to ask!
From India, Pune
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