Have you wondered that you can save excess tax in India? Haven’t you done proper tax planning yet? There are several ways that you can use to save excess tax in India. In this post, you will find out the most valuable tax saving methods.
Through Salary Restructuring
There may be multiple expenses which you are doing just because of your job. If you give resign from your job today, some of your expenses will end. For instance, you wear a uniform as it is compulsory, you travel to your office daily. You might be reading particular books, newspapers, or magazines for the purpose of your job. If you leave your job today, all these expenses would end. In short, these are simply forced expenses, and your company is supposed to pay for them. You should talk to your supervisor and ask to restructure your pay. You really need to get allowances for all these kind of expenses. However, they would not be part of your income. So, these perks will be non-taxable. Later, you have to give proof of these expenses to avail tax-free allowances.
Some allowances that can save tax are listed below:
- Medical Treatment
- Office Entertainment
- Telephone and Mobile
- Personality Development
- Books, Newspaper, Magazine
Save Tax on Rent Payment
Sometimes you get a good job in a different state or city and you have to go there. If the organization doesn’t provide you accommodation, you need to rent out. You have to pay rent for your house just because of our job. Hence, this expense is supposed to be deducted from the income tax. Some organizations provide some kind of remuneration as House Rent Allowance (HRA). But, you can’t take full advantage of HRA for income tax. House Rent Allowance provides you with great tax saving. So, ask your supervisor to keep the terms of HRA in your salary structure. Also, make sure to take receipts of the rent from your landlord.
Leave Travel Allowances and Medical Expense
Some other expenses are also acceptable for exemptions. Such Expenses are generally deducted from the gross salary. Your company may give you some part of your income in the form of medical allowance. If you keep the actual bills of your medical expenses, then this allowance will become tax-free. So, you must collect the medical bills. Moreover, you can provide receipts of the medical expense of your all dependents. You can also take the advantage of the travel allowances.
We hope this post will provide you with a basic idea of saving tax in India. Don’t forget to give your opinion about tax saving ways. If you have any query, feel free to ask.