TwirlyPotato
TwirlyPotato

Tax Savings for 30% slab

So this is something that I have been researching for a while, apart from very well known instruments such as-(only mentioning the ones that should be done by everyone irrespective)

  • 1.5L annually through 80C
  • 50k standard deduction
  • HRA claim
  • Donation claims
  • Insurance/Medical claims

How are you folks optimising your post tax income? Would really like to hear it from people getting >= 24 LPA fixed, since from this point onwards a major chunk (almost 20% goes in taxes) and it really hurts.

20mo ago
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DancingNoodle
DancingNoodle

You have listed out all the legal options for a salaried person. Apart from that we can't do anything but to pay taxes and suffer.

Illegal? Donation to political parties with commision involved i.e you don't have to 'really' donate the amount but you need to give some commision to them, then they will provide geniune Donation certificate. You can literally save lakhs of tax if you are in high income group. But this is completely illegal and tax fraud. I came to know of this from colleagues of mine who are doing tax fraud from 10+ years. Apart from this the are numerous illegal ways to avoid tax.

DizzyMarshmallow
DizzyMarshmallow

Can you list a few more "illegal" ways ??

JazzyHamster
JazzyHamster

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PeppyMochi
PeppyMochi

+1

GroovyLlama
GroovyLlama
  • 50K additional in NPS (80 CCD 1B), this is over an above 80C limit
  • 10% of basic salary goes into NPS every month (employer's contribution) - 80 CCD (2) Ref - https://cleartax.in/s/section-80-ccd-1b

Downside - money gets locked in till retirement

  • LTA
  • F & B allowances (sodexo, books, etc. depends on the company)
  • Leave encashment amount is non taxable and can be claimed back (upto a certain amt.) if switching companies
WigglyPenguin
WigglyPenguin

If you can, ask your employer to treat you as a subcontractor instead of an employee. Then file income under section 44AD/ 44ADA. You might lose certain benefits like insurance and pf but savings are quiet high.

WigglyPenguin
WigglyPenguin

This will allow you to have 50% or less of your income as taxable. Will work if your income is under 50L.

CosmicDonut
CosmicDonut

You forgot 50K additional in NPS. NPS employer contribution.

DerpySushi
DerpySushi

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SwirlyPotato
SwirlyPotato
  • Home loan interest
GigglyHamster
GigglyHamster

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