Skip to main content

Salaried Employees : Income Tax Saving Tips

By dp2web
At the end of each FY, numerous tax payers hysterically make investments to minimize taxes, without satisfactory information of the different accessible alternatives. The Income Tax Act offers a lot of people more impetuses and remittances, separated from the mainstream 80c, which could decrease tax obligation generously for the salaried people. Here are seven shrewd tips to help you spare more and decrease taxes. 

1. Pay Restructuring 

Rebuilding your salary may not dependably be conceivable. Anyway if your organization licenses, or assuming that you are on great terms with your HR department, rebuilding a couple of segments could lessen your tax risk. 

Pick nourishment coupons rather than lunch stipends, as they are excluded from tax up to Rs. 50 for every feast 
Tax Saving Advice

Incorporate restorative stipend, transport remittance, instruction recompense, uniform overheads (if any), and phone costs as a major aspect of compensation. Produce bills of genuine expenditures caused for these stipends to lessen tax 

Pick the organization auto as opposed to utilizing your own particular auto, to lessen high essential taxation. 

2. Using Section 80c 

Segment 80c offers a most extreme deduction of up to Rs. 1,00,000. Use this area without bounds by putting resources into any of the accessible investment choices. A couple of the alternatives are as takes after: 
  • Public Provident Fund 
  • Life Insurance Premium 
  • National Savings Certificate 
  • Equity Linked Savings Scheme 
  • 5 year altered stores with banks and post office 
  • Tuition fees paid for kids' education, up to a greatest of 2 children

3. Choices beyond 80C 

In the event that you have depleted your cutoff of Rs. 1,00,000 under area 80C, here are a couple of additional choices: 
  • Section 80D - Deduction of Rs. 15,000 for medicinal protection of self, life partner and ward youngsters and Rs. 20,000 for medicinal protection of folks above 65 years 
  • Section 80G- Donations to specified stores or altruistic foundations. 

4. House Rent Allowance 

Is it true that you are paying rent, yet not appropriating any HRA from your organization? The minimum of the accompanying could be guaranteed under Section 80GG: 
  • 25 per cent of the aggregate wage or 
  • Rs. 2,000 for every month or 
  • Abundance of rent paid over 10 for every penny of aggregate pay 
This deduction will however not be permitted, in the event that you, your life partner or minor kid possesses a private accommodation in the area where you live or perform office obligations. 

In the event that HRA structures a piece of your pay, then the base of the accompanying three is accessible as exemption: 
  • The genuine HRA appropriated from your employer 
  • The actual rent paid by you for the house, minus 10 per cent of your salary (this includes basic  dearness allowance, if any)
  • 50 percent of your fundamental compensation (for a metro) or 40 percent of your basic salary (for non-metro). 
5. Tax Saving from Home Loans 

Utilize your home loan proficiently to spare more tax. The principal part of your advance, is incorporated under Section 80c, offering a deduction up to Rs. 1,00,000. The investment bit offers a deduction up to Rs. 1,50,000 independently under Section 24. 

6. Leave Travel Allowance 

Online Tax Planner - Save your TaxUtilize your Leave Travel Allowance for your occasions, which is accessible twice in a square of four years. In the event that you have been unable to claim the profit in a specific four- year square, you could now convey forward one excursion to the succeeding piece and case it in the first logbook year of that piece. In this manner, you may be qualified for three exemptions in that piece. 

7. Tax on Bonus 

A bonus from your employer is completely taxable in the year in which you accept it. However ask for your employer for the accompanying: 

  •  If you expect tax rates to be lessened or slabs to be adjusted in the resulting year, check whether you could push the bonus installment to the consequent year 
  • Produce your tax investment items well some time recently, to counteract your employer from deducting tax on bonus before giving it over 

A Final Word 
Remember the beneath focuses, to escape the bothers of a minute ago tax planning. 

Give your employer parts of loans and tax saving investments previously, to anticipate any abundance deduction 

Check the Form 16 appropriated at the end of every year from your employer altogether 
It is vital to begin your tax planning certainly before 31st March, and to document your returns before the 31st of July every year.

Recommended Readings:
Tax Saving for Employee, Moneycontrol 
Tax Saving Tips, TOI
Fill your tax Online, Govt of India
Know about Income Tax Sections : Income Tax India

If you have more suggestions on this topic, you can comment below.

Labels:

Popular posts from this blog

Are you Water Literate? Why its important?

By
Water Literacy implies knowing where your water originates from and how you utilize it  It's a basic concept yet information about how all your water is supplied can be exceptionally mind boggling. To begin with, conveying water to you is not simply conveying stream to the tap and toilet. Each thing in your house obliged water to be made, so you are encompassed by their embedded water cost. Food, clothes, furniture, electronics – everything costs water to produce.  For instance, creating electricity is extremely water escalated. Dams require solid streaming rivers, coal and nuclear plants need billions of gallons to operate. Indeed, even solar panels oblige water to be produced. Contingent upon where your electricity originates from, it takes 6 to 12 gallons of water to produce one hour of force for a single 60 watt light.  Water Literacy sets standards for water information that each young adult ought to know by age 18 as essential knowledge for healthy and fe...
Read more

Nearly 1000 startups expected to be funded in 2016: Report

By
The forecast depends on the run-rate seen in Q1 2016, and the contribution from first quarter to the yearly deal volume. There have been 255 deals till mid-April this year, said the report.  2016 will keep on being the year for startups as investment funds keep the money desiring a generally cash-compelled ecosystem. While financial speculators will keep subsidizing the startups, 'little is protected' is liable to be the characterizing theme for startup subsidizing, as deal size is relied upon to be much littler in contrast with the hyper subsidizing as of late, claims VCCEdge Q1CY2016 Startup India Funding Report.  The year 2016, consequently, will be the year of solidification with startup valuations getting trimmed, early-stage financial specialists turning mindful and a general fixing of purse strings.  The report characterizes startups as organizations that have reported raising an Angel or Seed-stage subsidizing, or a Venture Capital Round An or Round B in th...
Read more

Why odd-even doesn’t seem to be working this time?

By
The odd-even traffic policy has been actualized for the second time in the midst of huge public support for the first edition in January when residents of Delhi witnessed sliced traffic on Delhi's busiest stretches even however the impact on pollution has been sketchy.  This time, be that as it may, things have not been as smooth even in the underlying stages. Huge traffic jams were witnessed on Monday on arterial stretches, for example, Akshardham, South Extension, Bhairon Marg, Azadpur, ITO (towards Vikas Marg), India Gate, Dhaula Kuan, Patel Nagar, Punjabi Bagh, Delhi-Gurgaon Road, and the Ashram crossing point in the morning surge hours.  Top five possible reasons why the road rationing policy is not as powerful this time:  1. Schools  In the first phase, schools in the city were closed which implied less cars on the roads. This time, the schools are open and with private cars utilizing on exchange days, there are more school transports on roads. ...
Read more