New Job and Tax Concerns: What Are the Best Ways to Save on Income Tax?

I have recently joined a company, and my CTC is coming under the taxable limit. I would like to know the various savings which I can opt for to save money.

Dear Gurminder,

I have recently joined a company, and my CTC is coming under the taxable limit. I would like to know the various savings options I can opt for to save money. Having an LIC Policy, making PF voluntary contributions, and saving in NSC can help reduce your financial burden.

Please let me know if you need more information or assistance with your financial planning.

Thank you.

Dear Gurminder,

Kindly send the details of the salary structure as per your appointment letter so that I can advise you regarding tax-saving matters as allowed under the Income Tax Act.

Basudeva Choudhury
New Delhi
Mobile no. 9891430567

Hi Basudeva Choudhury,

Please suggest to me how I can also save money. Every year, I am paying 30000 for taxes, and my salary is 40000. Kindly provide your suggestions at the earliest. You can reach me at [Login to view].

Regards,
Meenakshi

I want to ask one question here: If someone has an 8 lakh annual salary, then how to save tax and what is the maximum amount of tax that can be saved? Apart from the tax slab + 1 lakh investment in LIC/NSC/PPF + Medical, any thoughts?

Section 80C allows a maximum limit of Rs 1 lakh across investments ranging from provident fund, PPF, infrastructure bonds, fixed deposits (5 years or more), NSC, insurance/pension plans, unit linked insurance, equity linked savings scheme etc. It also includes tuition fees of your children and the repayment of principal on your housing loan. The interest component on your home loan has a separate limit of Rs 1.5 lakh. Medical premia upto a maximum of Rs 15,000 qualifies for deduction, with an additional Rs 15,000 for parents.House Rent AllowanceMinimum of – 1. Actual HRA 2. Rent Paid – 10% of Basic 3. 40a% of Basic (Non-Metros) or 50% of Basic (Metros)Conveyance AllowanceRs 800 / MonthLeave Travel AllowanceTwo trips in a block of 4 Yrs Amount not exceeding Air Economy or Rail AC I Fare shall be for shortest distance and for a single destinationMedical ReimbursementRs 15,000 / Annum