Salaried Employees : Income Tax Saving Tips

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 

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 

Utilize 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.