You have many schemes for tax saving. Such as Senior Citizen Savings Scheme, Public Provident Fund, Sukanya Samriddhi Yojana, let’s know the complete details.

1. Senior Citizen Savings Scheme

Senior Citizen Savings Scheme can be opened after 60 years of age or more, it gives interest at the rate of 8.2% per annum. A person taking VRS who is more than 55 years but less than 60 years can also open this account. Under this scheme, money can be invested for 5 years. Please note that after maturity, the scheme can be extended by 3 years. A maximum of 15 lakh rupees can be invested under this scheme.

2. Sukanya Samriddhi Yojana

Under Sukanya Samriddhi Yojana, an account is opened in a post office or bank after the birth of the girl child and before she turns 10 years old. You can open an account for Rs 250. It gives an interest rate of 8.2% per annum which is more than FD. You can deposit a maximum of Rs 1.5 lakh in any one financial year under this scheme.

3. Public Provident Fund

Currently, 7.1% interest is being given on the amount deposited in Public Provident Fund (PPF) accounts. PPF account can be opened for 15 years, which can be extended for another 5 years. You can open an account in PPF with a minimum of Rs 500. Please note that it is necessary to invest at least Rs 500 in a financial year. You can invest a maximum of Rs 1.5 lakh in a year.

4. National Savings Certificate

Investment in Post Office National Savings Certificate (NSC) is getting 7.7% annual interest. To open this account, you have to invest a minimum of Rs 1000, there is no maximum limit.

5. Time Deposit Scheme

Time deposit scheme is a type of fixed deposit. In this, you can take advantage of fixed returns and interest payment by investing a lump sum amount in a fixed time. In this, interest of 6.9 to 7.5% is being given for a period of 1 to 5 years. You can avail tax exemption under 80C by investing for 5 years. Let us tell you that on depositing in time deposit for 5 years, you will get interest at the rate of 7% per annum. In this, you have to invest a minimum of Rs 1000 and there is no limit on maximum investment.

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If you plan properly and use all the exemptions and deductions properly, then you can surely save tax on a salary of up to Rs 12 lakh. For this, you will also have to keep your salary structure such that the tax scope is not high. Usually, at the beginning of the year, there is an option to change the salary structure. You can decide how much money you want in reimbursement and how much money as taxable salary. In reimbursement, options like conveyance, LTA, food-coupon or entertainment, internet or phone bill and petrol are available.

Take full advantage of HRA

Apart from this, there is also an option of HRA for tax saving. For HRA, you have to calculate 3 numbers and whatever is the lowest among them, you will get tax exemption on that.

1. The HRA given by the company in the salary can be claimed.
2. You can claim up to 50% of the basic salary in metro cities and 40% of the basic salary in non-metro cities as HRA.
3. You can claim HRA up to the amount that remains after deducting 10% of the basic salary from your total rent.

If your annual salary is Rs 12 lakh, then you should structure your salary in such a way that HRA is Rs 3.60 lakh, LTA is Rs 10,000 and telephone bill is Rs 6,000. You will get deduction on gross salary in this way-

• Standard deduction under section 16 – Rs 50,000
• Exemption from professional tax – Rs 2,500
• HRA under section 10 (13A) – Rs 3.60 lakh
• LTA under section 10(5) – Rs 10,000
• If you add all the above items, your taxable salary will now be Rs 7 lakh 71 thousand 500 (7,71,500).

The further calculation will be like this:

• Under Section 80C (LIC, PF, PPF, children’s tuition fees, etc.) – Rs 1.50 lakh
• National Pension Scheme (NPS) under Tier-1 under section 80CCD – Rs 50,000
• Health insurance for self, wife and children under 80D – Rs 25,000
• Deduction on health policy for parents (senior citizens) – Rs 50,000

Now the taxable salary will be less than Rs 5 lakh. If the taxable salary is less than Rs 5 lakh, then rebate and basic exemption will be available under section 87A. In this way your tax will become zero. It is worth noting that this formula will work on the old tax regime.

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In such a situation, what if you can save more than Rs 50,000 in tax with the help of New Pension System (NPS)? Let’s understand the whole thing

Under the old regime of the Income Tax Act, people get the opportunity to save Rs 1.5 lakh under 80C. Whereas NPS gives people the opportunity to save tax-free income apart from this exemption limit. While the benefits of NPS can be availed in the new tax regime as well.

Benefits of NPS in the new tax regime

Under Section 80CCD (2) of the Income Tax Act, you can save tax through NPS even in the new tax regime. This can be up to 10 percent of your basic salary. In fact, the contribution made by an employee to NPS is tax-deduction in the new tax regime. Generally, in the pension scheme, an employee’s contribution of up to 10 percent of his basic salary is tax-free, in the new tax regime this limit is up to 14 percent.

In such a situation, if an employee adopts the NPS offered by his company or employer, then contribution up to 14 percent of his salary will be tax free.

More than Rs 50,000 tax will be saved

Above we talked about software engineers, whose salary is generally good. In such a situation, let us assume that the basic salary of an employee is Rs 1 lakh per month. Then his NPS contribution will be around Rs 14,000 per month. Then his overall income tax will be reduced by more than Rs 50,000.

Skip fixed deposits, invest in debt funds

If you want to increase your tax savings, then you should invest in debt funds instead of fixed deposits. In FDs, interest earned every year is taxable, whereas money invested in debt funds is taxable only when the money is withdrawn.

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Otherwise money will be deducted from your account later. If you have invested in FD scheme in any bank, then it is necessary to fill Form 15G and Form 15H for tax saving on FD. Without this, your TDS will be deducted on the interest earned on FD.

Money will be deducted from FD
According to income tax rules, customers investing in FD schemes have to submit Form 15G and Form 15H to the bank at the beginning of every financial year. People below 60 years of age have to fill and submit Form 15G. At the same time, people above 60 years of age have to claim tax exemption by submitting Form 15H. TDS will not be deducted by submitting these forms.

Who can submit Form 15G and Form 15H?
People whose age is less than 60 years can fill and submit Form 15G. At the same time, people above 60 years of age can submit Form 15H to claim tax exemption on fixed deposits. If you earn more than Rs 40,000 interest on FD in a financial year, then in such a situation you can claim tax exemption through this form. You will not have to pay TDS on submission of this form. If you do not do this, you will have to pay tax on interest earned on more than Rs 40,000.

e-filing ITR : You will be able to check income tax notices in one click, this facility comes on the portal

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Income Tax Saving Option: The financial year is about to end. Everyone is planning to save as much tax as possible. To save income tax, salaried class invest under Section 80C of Income Tax. By investing in this, you get tax relief on income up to Rs 1.5 lakh. But if even after this your tax is due, then you can save your tax by investing under other sections of income tax. If you are also thinking about tax saving options other than 80C, then we give you information about it.

NPS will save tax

If your limit under Section 80C has been exhausted and you want to save tax, then do not worry. You can save tax up to Rs 50,000 by investing in the National Pension Scheme (NPS). This investment is in addition to the limit of Rs 1.5 lakh under section 80C. This means that you can save tax on total income up to Rs 2 lakh.

Exemption on Health Insurance:

If you pay health insurance premium for your family, you can get tax exemption on it. Under Section 80D, you can invest up to Rs 25,000 on the health insurance premium of yourself, spouse and children. Apart from this, if the age of your parents is less than 60 years, then you can pay a premium of up to Rs 25,000 for health insurance. But if your parents are senior citizens then this limit is up to Rs 50,000.

Exemption available on health checkup:

Do you know that you can also get tax exemption on getting a health checkup done? Under Section 80D, you can take deduction on the expenses incurred on investigation. Every year you can claim a maximum deduction of up to Rs 5,000. This amount comes within the limit of total deduction given under section 80D.

Exemption on interest on savings account

Under section 80TTA, individual taxpayers and Hindu Undivided Families (HUFs) (to whom section 80TTB does not apply) are entitled to a deduction on interest income from savings account opened in a bank, post office or co-operative society. The benefit of maximum tax deduction up to Rs 10,000 is available in the financial year.

Exemption available on donation:

If you have donated funds to someone under Section 80G, then you can claim deduction on the donated amount. But it should be kept in mind that the amount of this donation should not be more than 10% of the total income. This deduction is also available on donations made for the renovation of temples, mosques and churches approved by the Central Government.

7th Pay Commission: On March 30, central employees across the country will get a gift, this much will be the increase in salary after 4% DA hike.

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NPS will save tax

If your limit under Section 80C has been exhausted and you want to save tax, then do not worry. You can save tax up to Rs 50,000 by investing in the National Pension Scheme (NPS). This investment is in addition to the limit of Rs 1.5 lakh under section 80C. This means that you can save tax on total income up to Rs 2 lakh.

Exemption on Health Insurance:
If you pay health insurance premium for your family, you can get tax exemption on it. Under Section 80D, you can invest up to Rs 25,000 on the health insurance premium of yourself, spouse and children. Apart from this, if the age of your parents is less than 60 years, then you can pay a premium of up to Rs 25,000 for health insurance. But if your parents are senior citizens then this limit is up to Rs 50,000.

Exemption available on health checkup:
Do you know that you can also get tax exemption on getting a health checkup done? Under Section 80D, you can take deduction on the expenses incurred on investigation. Every year you can claim a maximum deduction of Rs 5,000. This amount comes within the limit of total deduction given under section 80D.

Exemption on interest on savings account
Under section 80TTA, individual taxpayers and Hindu Undivided Families (HUFs) (to whom section 80TTB does not apply) are entitled to a deduction on interest income from savings account opened in a bank, post office or co-operative society. The benefit of maximum tax deduction up to Rs 10,000 is available in the financial year.

Exemption available on donation:
If you have donated funds to someone under Section 80G, then you can claim deduction on the donated amount. But it should be kept in mind that the amount of this donation should not be more than 10% of the total income. This deduction is also available on donations made for the renovation of temples, mosques and churches approved by the Central Government.

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If you want to secure the financial future of your family, then life insurance policy can be one of the best options for that. But, many times people take a policy (Life Insurance Tax Benefits) just to save tax.

Should one take insurance to save tax?

If your aim is only to save tax (Income Tax 2024), then you should look at other options other than insurance policy. There are many such schemes of the government, by investing in which you can not only save a good amount of tax, but you also get excellent returns.

Whereas, if we talk about insurance policy, it costs more. This also affects your returns. Many times the returns come down to just 4 to 5 percent.

Why should one take an insurance policy?

The whole purpose of an insurance policy should be to cover your risks. Such as compensation for physical and financial losses caused by accidents. This secures the financial future of you and your family. Life insurance should not be seen as a tax saving option.

One should be more cautious during January-March. Insurance companies put more pressure on their agents to sell policies during January to March, because they have to meet the target. During this time, taxpayers also look for options to save tax. In such a situation, the agents sell the policy at a huge premium under the pretext of saving more tax.

If you want to get more returns then invest your money here

Many government savings schemes give much better returns than insurance policies. In these, tax exemption is available under 80C. Now like 8.2 percent return is being given on Sukanya Samriddhi Yojana and 7.1 percent return on Public Provident Fund (PPF).

Tax exemption of Rs 1.5 lakh is also available on mutual fund schemes like Equity Linked Saving Scheme (ELSS). Apart from this, returns can also be more than 10 percent.

HDFC Bank increased interest rates on fixed deposits, avail interest up to 7.75 percent

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If your employer contributes up to 10% of your basic salary and DA to the NPS corpus, then this amount will not come under the ambit of tax. This money can be part of your total cost-to-company (CTC). This will reduce your tax liability significantly.

You yourself can contribute up to 10 percent of your basic salary and DA to NPS. On this you can claim deduction under section 80CCD (1). Let us know in detail how NPS can help you in saving tax.

In addition to the 10% contribution of base salary and DA under Section 80CCD (1), you can avail an additional tax benefit of Rs 50,000 under Section 80CCD (1B). This is in addition to the 80C limit. But, it has to be kept in mind that the deduction available under section 80CCD (1) is subject to the total limit of Rs 1.5 lakh under section 80C.

Apart from this, Section 80CCD (2) can help you a lot in tax-savings. For this, your employer will have to contribute up to 10 percent of your basic salary and DA to your NPS corpus. This limit of 10 percent is for people working in the private sector. For government employees this limit is 14 percent.

The tax benefit available under section 80CCD(2) is available in both the new and old income tax regimes. If you are a private employee, you can ask your employer to contribute up to 10 percent of basic salary and DA to NPS. This money will be a part of your CTC, so there will be no additional burden on your employer.

This can be understood with an example. Suppose your basic salary and DA is Rs 50,000 every month. In such a situation, your employer can contribute Rs 5000 to your NPS every month. In this way he will contribute Rs 60,000 annually. This money will be taken out of your taxable salary.

Most of the deductions and exemptions are not available in the new income tax regime. But the benefit of deduction under section 80CCD (2) is available on contribution in NPS. The government has also given the benefit of standard deduction of Rs 50,000 in the new income tax regime from the financial year 2023-24. If you are employed then you can avail this benefit.

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The season of tax saving has arrived. People earning more have started struggling to save tax. The central government has given tax exemption on income up to Rs 7 lakh under the new tax regime, while annual income up to Rs 5 lakh has been exempted under the old tax regime. But if your annual income is more than these two limits then you may have to pay tax.

People have to pay tax on higher income as per the tax slab. Under the old tax regime, the Income Tax Rule says that no tax will have to be paid on annual income up to Rs 2.5 lakh. There is a provision of 5% tax on income of Rs 2.5-5 lakh. Whereas 20% tax is charged on annual income of Rs 5-10 lakh. There is a 30% tax slab on annual income of Rs 10 lakh and above.

Tax can be saved even on income of Rs 10.50 lakh

According to this, if your annual income is Rs 10 lakh then you will have to pay 30% tax. However, if you want, you will not have to pay even a single rupee tax. Not only this, even if your salary is Rs 10.50 lakh, you can save the entire amount of tax by investing and taking advantage of exemptions.

How can you save tax on income of Rs 10.50 lakh?

1. A rebate of up to Rs 50 thousand is available as standard deduction. In such a situation, tax will now be levied on Rs 10 lakh.

2. By investing in schemes like PPF, EPF, ELSS, NSC, you can save tax of Rs 1.5 lakh under Section 80C of Income Tax. Now if we subtract Rs 1.5 lakh from Rs 10 lakh, Rs 8.5 lakh will come under tax.

3. Similarly, if you separately invest up to Rs 50,000 annually in the National Pension System (NPS), then under Section 80CCD (1B), you get help in saving income tax of additional Rs 50 thousand. Now if we subtract Rs 50 thousand more, Rs 8 lakh will come under the tax net.

4. If a home loan is also taken, then tax saving of up to Rs 2 lakh can be done on its interest under Section 24B of Income Tax. If you subtract another Rs 2 lakh from Rs 8 lakh, the total tax income will be Rs 6 lakh.

5. By taking a medical policy under Section 80D of Income Tax, you can save tax up to Rs 25 thousand. Your name, your wife and children’s names should be there in this health insurance. Apart from this, if you buy health insurance in the name of your parents, you can get an extra discount of up to Rs 50,000. In this case, if we subtract 75 thousand from Rs 6 lakh, the total tax liability will be Rs 5.25 lakh.

6. If you donate to any organization, you can avail tax benefit of up to Rs 25,000. Under Section 80G of Income Tax, you can claim tax deduction up to Rs 25,000 on the amount given as donation.

After deducting Rs 25 thousand, your income will now come in the tax slab of Rs 5 lakh. According to Income Tax rules, no tax will have to be paid under the old tax regime on income up to Rs 5 lakh.

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You have the deadline till 31st July every year to file income tax return. Ever since the advent of the old tax regime and the new tax regime in the country, people often remain in doubt as to which tax regime should be adopted.

The number of people filing ITR under the old tax regime is still high in the country. If you are also in the old tax regime and want to know which investment option would be right to invest in this short time left, then your search can be completed here.

Section 80C (PPF, Bank FD, ELSS)

If you have less time left, then first of all you should see in which investment medium you can save your money by investing under Section 80C and also save tax. Insurance premium,

children’s tuition fees, EPF contribution to home loan repayment are covered under this section. In this section 80C, you get the facility to save tax up to Rs 1.50 lakh.

From LIC to PPF, from fixed deposits to tax saver mutual funds etc., you can invest money and these are such investment modes which not only help you save but also help in saving tax. Apart from these, you can take popular investment options like ELSS fund, PPF, NPS and FD.

Other Options (NPS)

Taxpayers can invest up to Rs 50,000 in NPS (Tier 1) through which deduction can be claimed under 80CCD (1B), which can be available over and above the deduction of up to Rs 1.5 lakh under 80C.

Section 80D (Health Insurance)

Under Section 80D, you can claim tax exemption on health insurance through medical insurance premium. In this, you can achieve the limit of up to Rs 5000 for health expenses spent for yourself or your family or parents.

Charity or donation

It is important for those taxpayers who are trying to save tax through charity to make a donation to any eligible charitable organization before 31-03-2024 so that they can claim tax exemption in this assessment year.

Special Note: If you have opted for the new tax regime, you will not be able to avail the benefit of tax deduction given in the old tax regime.

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If tax is payable on your salary, the company deducts it. However, the final calculation of income tax is done by the Income Tax Department only after filing ITR. The Income Tax Department either deducts tax from your financial year’s earnings or sends you a tax refund.

How to pay minimum income tax?

The question that every employee has is how to avoid income tax or at least how to pay income tax? If you have selected the old tax regime then you will definitely have this question. Tax exemption of Rs 12,500 is available under Section 87A of the Income Tax Act. There are many investment options under the old tax regime. Even if your salary is Rs 12 lakh, you do not need to pay tax of Rs 1.

Planning is necessary to save tax

Chartered Accountant Ashish Mishra says that to save income tax, you need to plan your savings properly. For this you can take advice from any expert. If the company has deducted your tax, then you can get the deducted money back by filing ITR. On salary of Rs 12 lakh, you come under 30 percent tax bracket under the old tax regime. It would be better for you to select the old tax regime on this salary. See the complete calculation…

This is the complete mathematics

1. Any company pays the salary of its employees in two parts. In this, the first is called Part-A and the second is called Part-B. At some places it is called Part-1 and Part-2. Generally, on a salary of Rs 12 lakh, Rs 3 lakh is kept in Part-B or Part-2. In this way your taxable income reduces to Rs 9 lakh.

2. First of all, you subtract Rs 50,000 given by the Finance Ministry as standard deduction. After deducting these, your taxable income reduced to Rs 8.50 lakh.

3. You can claim savings of up to Rs 1.5 lakh under Section 80C of Income Tax. In this, tuition fee, LIC, PPF, Mutual Fund (ELSS), EPF or principal amount of home loan can be claimed. In this way taxable income reduced to Rs 7 lakh.

4. Under Section 24B of Income Tax, a rebate of Rs 2 lakh is available on home loan interest. Now after reducing this, the taxable income reduced to Rs 5 lakh. Rs 12,500 is taxed on income of Rs 5 lakh. But the Income Tax Department gives exemption in this under Section 87A.

More options for tax saving

If your salary is more, then to make the income tax zero (0), you will have to invest Rs 50 thousand in NPS under 80CCD (1B). Apart from this, under Section 80D, you can claim premium for health insurance of children, wife and parents. Premium up to Rs 25 thousand can be claimed for child and wife. You can claim Rs 25000 separately for parents. If your parents are senior citizens then you can claim Rs 50,000 as premium.

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If you plan smartly, you can save lakhs of rupees by investing in many types of schemes. We are telling you about one such option where you are getting the benefit of tax saving along with good returns. Its name is Public Provident Fund Account.

By investing in Public Provident Fund i.e. PPF, you can avail the benefit of guaranteed returns as well as tax exemption. You can invest in PPF for a total of 15 years. Investors get the opportunity to deposit money ranging from Rs 500 to Rs 1.50 lakh every year, in which they are getting the benefit of 7.1 percent interest on the deposited amount.

Along with this, you are getting an annual exemption of Rs 1.50 lakh on investment in PPF under Section 80C of Income Tax. According to the PPF calculator, if you invest up to Rs 1.50 lakh every year for 15 years, you will get Rs 40.68 lakh on maturity. The amount invested in this will be Rs 22.50 lakh, on which Rs 18.18 lakh will be received as interest.

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Income Tax: People also have to pay tax on their income. Every year people have to file income tax return. At the same time, due to taxable income, people also have to pay tax. Although many such schemes are also going on, through which tax can also be saved. Today we are going to tell you about one of those schemes, which can be useful in tax saving. Let’s know about it…

PPF scheme

The name of the scheme we are talking about is Public Provident Fund (PPF). This scheme is being run through the Central Government. In this scheme people can invest some amount every year. People get interest on the invested amount and also tax can be saved every year on the invested amount. The interest received under this scheme is reviewed every three months. At present, 7.1 percent interest is being given under this scheme.

A maximum investment of Rs 1.5 lakh can be made every year in the tax benefit PPF scheme. Along with this, the benefit of this scheme is available in section 80C on filing ITR under the old tax regime. If a person files ITR under the old tax regime, then through the PPF scheme, a tax benefit of up to Rs 1.5 lakh can be availed under Section 80C.

The benefit under 80C, while the maturity of the PPF scheme is 15 years. People running this account can invest minimum Rs 500 and maximum Rs 1.5 lakh in PPF account every financial year. The more investment people will be able to make in a financial year, the more tax benefits people will be able to get under 80C every year.

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By investing in PPF, people can save a significant amount and can also get good returns. Today we are going to tell you about the PPF scheme in detail.

PPF Scheme

Public Provident Fund is a scheme run by the Central Government. In this, there is a guarantee of the government and interest is also earned at a fixed rate. At present, interest is being given at the rate of 7.1 percent in the PPF scheme. At the same time, investment is made in this scheme for a long period.

PPF Investment

Investors can invest in PPF scheme for 15 years. However, there is also a limit to invest in this scheme. The limit of this investment should also be kept in mind. Actually, an investor can currently invest Rs 1.5 lakh in a financial year in the PPF scheme.

Tax Benefit

In such a situation, if investing in PPF scheme, then keep in mind that at present Rs 1.5 lakh is invested in this scheme in a financial year and according to the current rate, interest will be earned at the rate of 7.1 per cent on an investment. . At the same time, tax benefit is also available on this investment.

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But among all this, the thing that has worked for you the most is that if you are employed, then your company must have started asking for actual investment proof from you, on the basis of which your tax will be deducted. If you haven’t asked yet, you will ask in a few days. But for tax saving you need to prepare well in advance.

Form-16 will be prepared on this basis, you will have to inform your company about what investments you have made since April 1 till now. Based on this, your Form-16 will be prepared. Let us help you in planning for tax saving. As a responsible citizen of the country, it is your duty to pay tax. But it is good for you to save as much tax as you can.

Understand here, how can you save tax?

You can invest the tax saving money for the future of your family or child. From mutual funds to FDs, all investment options are available in the market today. Today we talk about your salary and tax. Even if your salary is Rs 12 lakh, you do not need to pay Rs 1 tax.

It is important to plan properly to save tax, it is necessary for you to plan properly. For this, you can also consult an expert. If money has been deducted from your salary in the company where you have worked, then on the basis of this calculation, you can get back the deducted money by filing ITR in June-July. Let’s see the complete calculation in an easy way…

If your salary is 12 lakhs, then you come under 30 percent tax. Actually, there is a liability of 30 percent on the annual income of more than Rs 10 lakh.

This is the complete math

1. Every company gives salary to its employees in two parts. In a company it is called Part-A and Part-B. Somewhere it is called Part-1 and Part-2. Tax has to be paid on Part-A or Part-1 salary. Usually, on a salary of 12 lakhs, two lakh rupees are kept in Part-B or Part-2. In this way your taxable income has come down to Rs 10 lakh.

2. After this, deduct Rs 50,000 given by the Ministry of Finance as standard deduction. After deducting these, your taxable income comes down to Rs 9.50 lakh.

3. Under Section 80C of Income Tax, you can claim savings of up to Rs 1.5 lakh. In this, you can claim tuition fee, LIC (LIC), PPF (PPF), mutual fund (ELSS), EPF (EPF) or home loan principal etc. Now your taxable income has come down to Rs.8 lakh.

4. Under section 24B of income tax, you get a deduction of two lakh rupees on home loan interest. In this way, your taxable income has come down to Rs.6 lakh here.

5. After this you will have to invest 50 thousand rupees in National Pension System (NPS) under 80CCD (1B) to make the taxable income zero (0). Here the taxable salary has come down to Rs 5.5 lakh per annum.

6. Under Section 80D of Income Tax, you can claim premium for health insurance for children, wife and parents. A premium of up to Rs 25,000 can be claimed for the child and wife. If your parents are senior citizens, you can claim Rs 50,000 as premium. After deducting these two, your taxable income comes down to Rs 4.75 lakh.

Let us tell you that on the income of Rs 2.5 lakh to Rs 4.75 lakh, a tax of Rs 11250 is made at the rate of 5 percent. But there is a tax exemption of up to Rs 12,500 from the Ministry of Finance. In this way your tax liability becomes zero.

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1- House Rent Allowance

House Rent Allowance i.e. House Rent Allowance is given by most of the companies to their employees. It ranges from 40-50% of your basic salary. When you file ITR, you get exemption from income tax on the amount of house rent allowance. In such a situation, if your company does not give house rent allowance, then definitely talk to the HR of the company, so that you can save tax.

2- Travel or conveyance allowance

Transport allowance or travel allowance or conveyance allowance, by many names, covers your traveling expenses. The company gives you this allowance for commuting from home to office. Although this allowance is also a part of your salary, but if you take it as an allowance, then you can get tax exemption on it. Not only this, some companies give conveyance allowance as reimbursement. In such a situation, far from being taxed on this money, it is not included in your salary for tax deduction.

3- Food Coupons

Food Coupons or Meal Vouchers or Sodexo Coupons are given like conveyance allowance, under which you can get coupons up to Rs.100 per day. Now there is also a facility to send money directly to Paytm Food Wallet. The good thing about these coupons is that they are given to you in the form of reimbursement. That is, the company gives you 100 rupees for food twice a day at the rate of 50 rupees per mile. In this way you can make a profit of Rs 26,400.

4- Car Maintenance Allowance

There are some companies that even give car maintenance allowance to their employees. Under this, the employee is given the maintenance of the car, the cost of its diesel or petrol and even the salary of the driver. Under this, employees can get a discount from Rs 2700 to Rs 3300 per month. If seen, this amount is very less compared to the actual cost of car maintenance, but with the help of this allowance, you get an opportunity to save tax on some of your extra salary.

5- Leave Travel Allowance

Many companies give leave travel allowance to their employees. You can also take advantage of this while filing ITR. Under this, you are given an allowance to go somewhere. You can go on a long tour twice in four years. You will get tax exemption up to a certain limit on the cost of this tour. This limit can be as much as your leave travel allowance. So now you should also plan to travel, but first talk to HR and add leave travel allowance in your salary.

The post Tax Saving Tips: Get these 5 allowances included in your salary, a lot of cwill not be taxed, here is the complete list first appeared on Rightsofemployees.com.