Hi,
Please let us know your package so that we can guide you probably.
I am getting lots of tax deduction after changing the company
I am getting almost 26k of tax after changing the organisation.. i have already done the investments of 1.5 lacks.. and declared the following components. below comes in my FBP component HRA : 8333 rupees per month Meal Voucher : 1700 rupees per month Child Education Allowance : 200 rupees per month pls call me on [deleted] or mail me [deleted]
Asked 6 years ago in Income Tax
Basic Salary - 427900 FBP - 947100 (Includes HRA+FOOD COUPON +Child Education Allowance) CONTRIBUTION TO PF =51348 GRATUITY -20582 THE TAX Computation shown ny company is as follows Gross Salary 947100.00 Previous Employer Salary 483073.00 Less: Section 10 Exemptions * 0.00 Net Salary 1430173.00 Less: Deduction U/s 16 (standard Dedn, Prof. Tax) 40000.00 Less: Previous Employer PT 1200.00 Net Taxable Salary 1388973.00 Less: Loss On House Property * 0.00 Add: Other Income / House Property * 0.00 Gross Total Income 1388973.00 Less: Deduction Under Chapter VI A * 150000.00 Taxable Income (Rounded) 1238970 Tax Payable on Total Income 184191.00 Less: Section [deleted].00 Net Tax Payable after Section 87 relief 184191.00 Add: Surcharge 0.00 Add: Cess 7368.00 Total Tax Payable 191559.00 Less: Tax Recovered 0.00 Less: Tax Recovered Previous Employer IT 34813.00 Balance Tax Payable 156746.00 Tax Per Month (Remaining Months: <6>) =26124.00 Please let me know how to reduce the tax,I tried investing in NPS also but the HR said NPS will be considered next year. Please find below the previous company salary my previous employer salary till september was 483073 professional tax paid 1200 standard deduction 40000 pf 18040 so tax calculated was supposed to be 8692 education cess 348 tax calcu till sept should be =9040 tax deducted pre. employer is 34813.i paid an extra tax of 25773 till sept. suggest investment
Asked 6 years ago
Hi,
The tax computation is not correct.
You can reduce your taxable salary by providing proof of expense for the mentioned FBP heads.
By doing so, you get a chance to save more tax and my suggestion is to always declare everything under FBP even if you do not intend to spend your money on FBP heads.
So, if you provide proofs for them, you will get the money as tax-free. However, if you do not provide proofs, the money will be taxable.
Please first take the benefit of all these exemption. It will definitely reduce your total tax liability.
Thanks & Regards,
Payal Chhajed
This need detailed discussion and reply cannot be submitted in nutshell here..
Hi,
- Take the benefit of HRA exemption, meal allowance (Rs. 50 per meal is exempt) and children education allowance of Rs. 100 per month per child upto maximum of two children is allowed.
- Apart from it you can invest in Mediclaim policy (u/s 80D), NPS (up to maximum of Rs.50,000 u/s 80CCB), 80G.
Thanks
Hi,
As you are already mentioned that you are taking benefits of FBP.
Apart that, you can take the benefit of 80G donation, 80D medical insurance policy, 80CCB NPS etc.
Please note that for all these benefits, you have to submit proper proof.
There are various options to save tax but frankly in salary income you can't save much tax.
If your HR is not giving you deduction then also you can invest in NPS and save tax when you file your ITR you can claim refund of excess TDS deducted.
There are various options like NPS where you can save around 50000 then Mediclaim where you can save another 25000 which would save 25000 of your income tax. In salary income there are not much ways of saving tax.
If you are sad that you are getting less in hand salary then you need to convince your company to consider your investment and provide deduction and deduct less TDS.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
I dont think you are taking the benefit of all the deductions that may be available to you.
If you are staying in a rental place, you can claim HRA. Do you own any property in which you are paying any interest/principal repayment on account of home loans? You can optimise your tax payments by taking the benefit of meal coupons, investments in NPS, mediclaim benefit, donations, If any. You can also claim LTA. It will be better if you could call and discuss with me so that I can suggest further based on what you are currently doing.
You can take medical insurance for you your family and parents. Also, you can increase your HRA if you are paying higher rent.
Apart from the above, you can choose leave travel allowance (LTA), uniform allowamy etc subject to your company policy.
Please take a phone consultation for detailed discussion
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