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How to save Maximum income tax
- Thread starter deep@vie
- Start date
80CCD (NPS): 50k
Health insurance for parents - 50k or 55k if senior citizen
donations
Car allowance- If used entirely for the official purpose- This will be entirely exempt. Check with your employer if they allow it though.
NPS- 50K additional deduction for contribution in Tier -1. Plus you can structure your salary such that some part of your pay goes in NPS. This may affect your liquidity though.
LTA- 2 journey in block of 4 calendar years can be claimed.
Overall, there are very few avenues for saving tax for the salaried person.
It would be worthwhile to review your investment vis-a-vis income and check if the which regime of taxation suits you- ie. new regime without deductions or old regime.
NPS- 50K additional deduction for contribution in Tier -1. Plus you can structure your salary such that some part of your pay goes in NPS. This may affect your liquidity though.
LTA- 2 journey in block of 4 calendar years can be claimed.
Overall, there are very few avenues for saving tax for the salaried person.
It would be worthwhile to review your investment vis-a-vis income and check if the which regime of taxation suits you- ie. new regime without deductions or old regime.
Anas Manjevdiwala
TF Buzz
Medicals expenditure of parents (in case they do not have health insurance)
iRajat
TF Buzz
There is something called 80ccd 1b which allows deduction of 50k over and above 150 80c but it not worth it if we see the irr
i think there is a capping for NPS contribution also for tier 1
no capping on employer's contribution.
capping at 10% or 14%(in case of NPS) as per law.
50K under section 80CCD 1B
This is over and above 80C limit
Also as mentioned by others Employer's contribution to NPS 80 CCD2 at 10%/14% restricted to 7.5L (across EPF & NPS)
One way is to see whether your employer allows car lease on favourable terms : especially around the price you pay to xfer car in your name after lease period.
If you avail it, then you can utilise the special component of your salary thereby reducing your taxable income.
So basically your emi + chauffer salary+ fuel reimbursement gets deducted from special allowance.
The downside is that the car will be in company name and after the lease is over and u transfer it to your name, you will be 2nd owner.
If you avail it, then you can utilise the special component of your salary thereby reducing your taxable income.
So basically your emi + chauffer salary+ fuel reimbursement gets deducted from special allowance.
The downside is that the car will be in company name and after the lease is over and u transfer it to your name, you will be 2nd owner.
Useful option
www.bankbazaar.com
Special Allowance under Section 10 for Salaried Employees
Section 10 of Income Tax Act - Complete Information on Exemptions under Section 10 for Salaried Employees. Visit our site for more info on Section 10 (14). 14 May 2023
10% of ( basic+da) salary is the cap for private. only in tier 1 is eligible for tax benefits.. I think there is a 7.5 L limit p.a. whixh is quite high so sjd be fine
this is an excellent option for high tax individuals who really use and need a car. Some are wary because they feel there will be a lock in etc but nett. it will always be a gain
Super Annuation scheme if your employer offers
i dont think post office interest is being captured online yet by IT like bank acct
