The month of April is very important for the people who are employed. Because people’s eyes are fixed on the increment in salary. Apart from this, people also have to inform the company about their proposed investment. In the new financial year, companies give their employees the option to restructure the salary by changing the CTC.
If your company is also giving such option, then you can do Tax Saving by choosing it. However, keep in mind that this option is available only in the month of April. We are telling you eight such options, by changing which you can easily save tax. However, in most of these you have to submit the bill.
invest in nps
A salaried person can save tax by contributing to NPS. Under section 80 CCD (2), up to 10 percent of the basic salary kept in NPS is not taxed. However, despite this, only 10 percent of the employees take advantage of it. You can save tax of Rs 29,952 on investing up to Rs 96,000 in NPS annually. It is a very beneficial option for high income employees. In terms of returns, NPS is better than other retirement plans like PPF and PF.
Leave Travel Assistance
Salaried people can save tax by opting for Leave Travel Assistance (LTA) in their CTC. Travel fare of the family of any salaried employee is eligible for tax exemption as part of CTC. If you want to take advantage of it, then make it a part of CTC. Keep in mind that this option can be taken only at the beginning of the year. You cannot choose this option between years. Through Leave Travel Assistance, you can save tax of Rs 60,000 annually.
movable property
If the company offers its employees to buy movable assets, then the employees can make huge tax savings. Gadgets and equipment given to the employee for personal use are taxed at 10 per cent of the total price value. However, tax is not applicable in the case of computers and laptops. This option was widely chosen during work firm home during Kovid. This way you can save tax up to Rs 18,720 on assets
driver salary
Most of the companies give the option of driver to the senior employees. Even through the salary given to the driver, you can save tax of Rs 37,440 by showing an annual expenditure of Rs 1 lakh 20 thousand.
Fuel and Travel Reimbursement
If you come by office taxi, then the total amount is reimbursed. If an employee uses his own car or company vehicle for official purposes, he can claim reimbursement for fuel and maintenance amount. Through fuel reimbursement, an employee can save tax by spending Rs 48,000 annually. Overall tax saving can be up to Rs 14,976.
internet and phone bill
During the Kovid Pandemic, the option of reimbursement of phone and internet bills was also claimed a lot. You will have to submit the original bills to claim reimbursement for internet and phone bills. In this way, you can save tax up to Rs 5,616.
Newspapers and Magazines
Expenses like newspapers and magazines are also tax free. For this reimbursement also you will have to submit the original bill. By claiming newspaper and magazine expenses, you can save tax of Rs 3,744 on an annual expenditure of Rs 12,000.
miles coupons
You can also save a fair amount of tax through meal coupons. With the help of meal coupons, you can save tax of Rs 8,237 on spending Rs 26,400 in a year.