Delhi-based marketing executive Daljit Singh has paid Taxspanner.com’s Sudhir Kaushik to Taxspanner.com’s Sudhir Kaushik. do Because his salary is not very high. There is still room to reduce it financial obligation ahead. Taxspanner estimates that Singh could become completely tax-free if his salary structure includes tax-exempt components and if he invests in it. NPS To save tax. As a Marketing Executive, Singh travels a lot. He should start by asking his company for some basic tax-exempt components such as meal coupons and newspaper allowance. If he gets Rs 500 as monthly newspaper allowance and meal coupons of Rs.2,000 per month, his annual taxable revenue 30,000 will be reduced by Rs. Next, he should ask for a gadget allowance. Movable assets purchased in the name of the company for personal use are taxed at 10% of their value. This can reduce their taxable income by Rs 10,000.

If he invests in NPS, then a big reduction in taxable income is possible. Up to Rs 50,000 invested in NPS is deductible under section 80CCD(1b). There is more scope for reduction in total income by purchasing health Insurance For the parents, but Singh won’t have to do that for now. These three steps alone will reduce their taxable income by Rs 90,000, reducing it to Rs 5.43 lakh. The standard deduction of Rs 50,000 will take his income below the limit of Rs 5 lakh and make him eligible for tax relief under section 87A. Under this, if the total income of the taxpayer after claiming all deductions and exemptions is less than Rs 5 lakh, then the entire tax liability is waived off.

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Paying too much tax? Write to us at etwealth@timesgroup.com with ‘Optimize My Tax’ as the subject. Our experts will show you how you can reduce your taxes by making changes to your salary and investments.