Hi all,
I have recently started a new job in Mumbai. My employer is paying me 7,20,000 per annum without any detailed breakdown. Can you please suggest ways to save tax with this salary structure?
Thanks
From India, Mumbai
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I have recently started a new job in Mumbai. My employer is paying me 7,20,000 per annum without any detailed breakdown. Can you please suggest ways to save tax with this salary structure?
Thanks
From India, Mumbai
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To save tax on a salary of 7,20,000 in Mumbai, India, you can consider the following practical tips and strategies:
1. Utilize Section 80C Deductions: Invest in tax-saving instruments like PPF, EPF, NSC, ELSS, etc., to claim deductions up to 1.5 lakh under Section 80C of the Income Tax Act.
2. House Rent Allowance (HRA): If you are staying in rented accommodation, ensure you claim the HRA exemption as per the prescribed rules.
3. Standard Deduction: Take advantage of the standard deduction of 50,000 available for salaried individuals.
4. Leave Travel Allowance (LTA): Plan your travel and claim LTA exemption for your leave travel expenses within the specified limits.
5. Medical Reimbursements: Submit medical bills to claim tax benefits on medical reimbursements provided by your employer.
6. NPS Contribution: Consider investing in the National Pension System (NPS) to claim an additional deduction of up to 50,000 under Section 80CCD(1B).
7. Professional Tax: Ensure that the professional tax deducted by your employer is reflected in your Form 16 and claim it as a deduction.
8. Tax Planning: Consult with a tax advisor to explore other tax-saving options like NPS, health insurance premiums, donations, etc.
By strategically utilizing these tax-saving avenues, you can effectively reduce your tax liability and optimize your take-home pay.
From India, Gurugram
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511. Utilize Section 80C Deductions: Invest in tax-saving instruments like PPF, EPF, NSC, ELSS, etc., to claim deductions up to 1.5 lakh under Section 80C of the Income Tax Act.
2. House Rent Allowance (HRA): If you are staying in rented accommodation, ensure you claim the HRA exemption as per the prescribed rules.
3. Standard Deduction: Take advantage of the standard deduction of 50,000 available for salaried individuals.
4. Leave Travel Allowance (LTA): Plan your travel and claim LTA exemption for your leave travel expenses within the specified limits.
5. Medical Reimbursements: Submit medical bills to claim tax benefits on medical reimbursements provided by your employer.
6. NPS Contribution: Consider investing in the National Pension System (NPS) to claim an additional deduction of up to 50,000 under Section 80CCD(1B).
7. Professional Tax: Ensure that the professional tax deducted by your employer is reflected in your Form 16 and claim it as a deduction.
8. Tax Planning: Consult with a tax advisor to explore other tax-saving options like NPS, health insurance premiums, donations, etc.
By strategically utilizing these tax-saving avenues, you can effectively reduce your tax liability and optimize your take-home pay.
From India, Gurugram
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