I wanted to check up on the fact whether i am doing things correctly to save taxes or not and below is the details for the same. Gross Salary - 3,30,000/Month PF Contribution - 16,000/Month Income Tax - 75,175/Month Net pay - 2,38,000/Month
If i can save more taxes, how should i proceed furter assuming it's my first job and I've got little zero idea about anything around personal finances and taxes.
Congratulations on your first job!
You're already in the highest tax bracket.
Don't fall prey to choosing suboptimal vehicles to save tax - tax savings is secondary and a good goal oriented financial plan should be primary.
The best tax optimisation for you will be via:
EPF
PPF
NPS
Health Insurance (Self)
Health Insurance (Parents)
You'll likely exhaust limits with just this investment.
Don't do an ELSS, buy a house just yet, ULIPs, Endowment, Moneyback insurance plans.
Good luck!
Why not ELSS
You won't get benefit in tax savings (limits will already be exhausted) and needless 3 year lock-in.
Once you start to earn around 2L per month or more it's better to start investing in NPS. You can save a decent amount of tax that way.
Also, spend some one time cash on health insurance for you and your family. You can use this to claim ITR as well & you have a backup incase of medical emergency.
Already bought this. Will definitely look at NPS. Thanks
First job, dayum! Congrats
Looks about right, net would be higher for the first year since total taxable will be lower, assuming you just got the job
Why no HRA tax benefit?
I have very few knowledge on Tax. So sharing my queries here. Kindly guide me
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