How do People in high salary ranges save on taxes ??
I'm a salaried person with about 50 L base pay + some interest income + capital gains from equity. I'm currently paying around 10- 11 L in income tax. I'm following the old regime Claiming below major deductions Hra 80c Nps Political party donation Need to understand are there any more creative ways to save on taxes than what I'm already using ?? Also am I paying high tax than other people in similar income range ??
DesignTinker
Stealth
13 days ago
Get a home loan.
FindingHorses
Stealth
12 days ago
Don't take this advice
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LooseGoose
Stealth
13 days ago
How does political party donation help you? Can you share more about your reason behind party donation? Is it a small sum or bigger than 10k INR?
LooseGoose
Stealth
13 days ago
Also, I think there are a bunch of govt bonds and investment schemes, some in postal office, some in agriculture that are also tax free.
I heard you can purchase ownership of young teak and sandalwood trees to be sold in 10-15 years. With and without ownership of land.
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It's not a donation, it's a "donation"on paper.
You give them 5 lakhs online. They return you 4.5 Lakhs in cash along with a certificate of donation.
They get to legitimise their black money, you get to save on taxes.
Win win for both; but very much illegal if caught 🤐
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Bro donate to old age homes, anathalaya instead of polytical parties. You will get blessings at least
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Qwerty2398
Stealth
12 days ago
For salaried employees, nothing can be done. If you are in30% tax bracket, you will pay 4 months of your salary as tax. The only way to pay less tax is to learn less.
Nothing can be done. If your CA comes with a proposal, fire him.
Why fire the CA bud?
Isn’t it good that they are coming up with something?
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You can ask your company for a car lease. That reduces your taxable income and you can use that car as if it's yours. Talk to a CA for more details.
Lease payments attracts a very high GST which you as individual will not be able to offset
Bereal
Stealth
12 days ago
Long shot but you can get yourself converted to a consultant by your company (if they allow) and then you can claim 50% of it as profit under 44ADA and save a bunch of tax
Lol, better to show it as farmer income for 0 tax then! Viral reel reference 😅
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Similar bracket. A bit higher tax. No political donations.
Not sure what to do either. Super duper frustrating
Good point.
As tempting as that option sounds...
Don't want to come under the evil govt's radar.
I started with a small amount 4 years ago. Have been increasing that amount every year as my risk appetite (read greed) is increasing.
But still I figure there has to be a limit to this option also before it starts to backfire.
Don't want to kill the golden goose too soon 😶
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I guess political party donation is your key saving angle, otherwise old regime becomes loss making just after 25 LPA itself (unless you play HRA or home loan trick)
Yes, you can take a home loan and take 1.5L deduction for its interest paid every assessment year under Section 80EEA.
MinorCasualty44
Stealth
11 days ago
Yeah this is separate from 80C deductiona
Not sure what is your HRA amount, basis my experiences in your salary range, new regime looks better especially when deductions are low. A big deduction for people is Home loan interest.
He is doing illegality. Otherwise just about 25 lpa, old regime becomes useless.
Hra can be inflated to your family members. Upto 10laks no tax on rental income.
Some folks I know claim 15 lakhs of hra, 7.5 for 6 months on each of their parent name. And their parents file 0 tax itr.
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Political party donation now happens via electoral bonds, how you do that or you just donate 2k?
I'm just doing it the old way.
Where they give me a certificate of section 80ggc
KhattaAngoorrr
Stealth
13 days ago
Does CA help in political party donation? I'm in a similar bracket and would appreciate some help.
Would it be okay if I DM you?
With the 'on paper' political donation, you are just postponing a long bill from IT folks.
There isn't much you can do to avoid tax as a salaried employee honestly, rather research and invest well to cover up.
There is no way to trace if you actually do the money transfer and take it back in cash.
Most of such donations happen to petty political parties with no political significance. As per sec 80 G, to claim deduction, you need to produce pan no. (Yours and the political party's)
If you know anything about pan, you won't say there's 'no way' to trace.
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