Currently, a subscriber’s contribution to NPS up to Rs 50,000 gets deduction under section 80CCD (1B). But this facility is available only in the old regime of income tax. Taxpayers using the new regime do not get this deduction. This is in addition to the tax benefit of Rs 1.5 lakh available under Section 80C in the old tax regime.

NPS will be made attractive

Pension fund regulator PFRDA has demanded EPFO-like tax rules on employer’s contribution. Currently, the tax rules on employer’s contribution are different for NPS and EPFO. In NPS, only up to 10 percent of the employer’s contribution to the employee’s corpus (fund) is exempt from tax. This is 10 percent of basic pay and dearness allowance. On the other hand, in EPFO, a total of 12 percent contribution to the employee’s corpus is exempted from tax. For a long time, experts have been demanding to eliminate this difference in tax rules.

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However, it was also announced to give relief to taxpayers in the budget this time. While presenting the Budget 2023 on behalf of Union Finance Minister Nirmala Sitharaman, several announcements related to income tax were made. Due to which people filing income tax returns will get relief.

Income tax slab

While presenting Budget 2023, many changes were announced in the new tax regime by Finance Minister Nirmala Sitharaman. Under this change, earlier where there was no tax slab on income of Rs 2.5 lakh per annum, it was increased to Rs 3 lakh per annum. This means that on an annual income of three lakh rupees, tax will have to be paid zero in the income tax slab.

Tax rebate

At the same time, an important announcement was made by Finance Minister Nirmala Sitharaman in the Modi government. In the new tax regime, the rebate limit has been increased to Rs 7 lakh. This means that taxpayers who are filing income tax returns will get rebate up to Rs 7 lakh per annum, due to which they will not have to pay tax.

Standard deduction

Along with this, another important announcement was made by the Modi government, due to which taxpayers got more relief. In fact, in Budget 2023, it was announced by Nirmala Sitharaman that now taxpayers will be able to get the benefit of standard deduction in the new tax regime. Due to the benefit of standard deduction of Rs 50 thousand to the salaried people, people have got some more relief. Due to this, those people will not have to pay any tax up to an annual income of Rs 7.5 lakh.

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After the announcement of the Finance Minister, especially middle class salary employees are looking for saving options to save tax. However, only those who have opted for the old tax regime will get tax relief through savings. If you have not done this, then from April 1, 2023, the new tax system will be implemented by default. In such a situation, apart from 80C, there are many options related to savings to save tax.

National Pension Scheme

National Pension Scheme (NPS) is a good option to save and save tax. Along with this, this system also secures your old age. Under section 80CCD (1B), if you invest in the National Pension Scheme, you get an additional tax rebate of up to Rs 50,000. If someone has crossed his annual investment limit of Rs 1.50 lakh, he can get tax exemption by investing up to Rs 50,000 in a financial year in NPS.

Tax exemption on home loan

Home loan is a good option to save tax. Tax exemption can be availed on home loan interest up to Rs 2 lakh. For this, the taxpayer will have to tell about the loan and its EMI and interest payment while filing the return.

Let us tell you that you will get this exemption only when you are living in that unit or that unit should be in your name. Under section 80TTA of Income Tax, you can get relief from TDS in interest up to Rs 10,000 in a financial year. This rule applies to all bank’s savings accounts. If you have more than one savings account, the taxpayer is advised to calculate the interest earned from all the accounts. At the same time, senior citizens can get tax exemption of up to Rs 50 thousand in interest under section 80TTB.

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If you are employed, then your salary (salary) includes many such options (perks), which can be helpful in reducing the tax burden. Of these, some options require full payment of tax, while there are 10 such options which come under tax exemption. In such a situation, every employed person should pay attention to whether he is able to take advantage of the facilities provided by the company or not.

1. Employees’ Provident Fund (EPF)

According to the EPF Act, the company invests 12 percent of the basic salary and allowances of the employee in EPF. The company also has to invest the same amount. The employee’s contribution is tax exempt, which is up to Rs 1.5 lakh. This exemption is available under section 80C of the Income Tax Act. Interest earned on this also comes under the purview of tax exemption.

2. Leave Travel Allowance (LTA)

For the employees to travel anywhere in the country with their family, companies provide Leave Travel Allowance, which is tax exempt. This discount is available only on travel by train, airplane or public transport. In this, the shortest distance to reach the destination is made the basis. This part of the salary can be deposited by the employee by depositing the booked ticket with the company. This benefit is available only if you travel twice in four calendar years.

3. House Rent Allowance (HRA)

This part of the salary is given to the employee in lieu of payment of house rent. To get tax exemption on this, it is necessary that it should be part of the salary. You can claim tax exemption on the amount received for HRA with the specified limit.

4. Car Maintenance Allowance

Bank Re-imbursement can be claimed up to a limit on the cost of the car, as per the market. You can also get tax exemption on this. However, it depends on whether the car belongs to the company or the employee. This reimbursement is available for some special office work and many personal work.

5.
Most of the multinational companies give food coupons for food and drink during the work in the food coupon office. One can get tax exemption of up to Rs 50 on one meal. Twice a day for 22 working days in a month can avail tax exemption of up to Rs 26,400 annually.

6. Children Education Allowance

In lieu of payment of fees for the child, companies pay an education allowance of Rs 1,200 annually or Rs 100 per month to the employee. This facility is available for two children only. In addition, one can claim tax exemption on payment of tuition fees under Section 80C of the Income Tax Act.

7. Discount on Hostel Expenses

Companies give hostel expenditure allowance to their employees. Under this, the employee gets an annual allowance of Rs 3,600 or Rs 300 per month on the hostel expenses of the child, which is tax-exempt. This discount is available for maximum 2 children only.

8. Phone Bill Re-imbursement

This includes both telephone and mobile phone bill re-imbursement. Telephone charges including broadband internet connection are covered under this. Some companies provide this facility to their employees, which comes under the purview of tax exemption.

9. Uniform Allowance

The employees get this allowance for the maintenance of their uniform while on duty. You can also get tax exemption on the expenses incurred in the purchase and maintenance of the uniform.

10. Gift Voucher

Companies sometimes give gifts to their employees, on which tax exemption is available. However, the condition in this is that its total value does not exceed Rs 50,000 annually, only then can you get tax exemption.

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