How to save money on taxation?
I am joining new org with 17LPA, I just got to know that my tax slab will be 30%. I never had to think about it for last 2 years because i was with 3.75LPA since 2 years when my career began. How should i start to reduce my taxable income? I watched various yt videos and spoke to some close acquaintances but im not able to understand how to proceed
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Top ways to save tax
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Rent you pay. If you are living at home with parents, pay rent to Ur parents. It's perfectly legal, just need a proper legal rent agreement with them
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Education loan
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Home loan- If it's a self occupied prop, ie u stay in the property u took on loan, u get a rebate of 2 lakhs per year (on interest component) plus 1.5 lakhs (under principal) under 80C. If it's rented out, there is no limit on the interest component
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LTA (if Ur company has it)
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Expenses on books, driver, telephone (check if it company allows this)
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NPS (upto 50k)
Please spend INR 500 and talk to a CA. He will give you the best advice as compared to any anonymous forum. Reply to this if you want a CA contact in Bangalore.
You can save taxes under various section.
First is 80c, under which you can save upto 1.5L from your taxable income. This include EPF, ELSS and other.
Then comes the HRA part, where you can show rents to claim the HRA.
Then there is 80d, where you can save 25-75k by showing medical insurance and bills.
Then there is 80ccd, where u can save upto 50k from NPS.
In case if you have home loan on yourself, you can save there too.
These are major tax saving instruments. There are others as well, like LTA, and other in case your company provides that.
Simple. You cannot.
Breh😭
Maybe wrong for some cases but if you don't have a home loan or HRA, then better switch to the new regime.