Struggling with High Tax Deductions? How Can I Restructure My Salary for Better Savings?

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

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.

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.

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.

@nathrao,

Thank you for the suggestion. Can you review my salary structure and recommend adjustments to reduce the basic salary for a lower taxable income?

Best regards,
[Your Name]