NDTV

Business

Hindi

Movies

Cricket

Good Times

Food

Tech

Prime

Dena Bank Hikes Interest Rates on FCNR Deposits

Suzuki Motorcycle Sales Up 43% in December
Search

BSE Suspends Trading in 22 Companies

GOLD

Market Indicators

26542.00

As on 02 Jan, 2015, 04:00 PM

Home

Live TV

SILVER

Earnings

Savings & Investments

-158.00 (-0.59%)

Markets

Mutual Funds

You are here: Home

Budget
MF Dashboard

CRUDE OIL

36071.00

Economy

3337.00

-102.00 (-0.28%)

Industries

Loans & Mortgages

Corporate
Insurance

Your Money

MARKET
DASHBOARD

-63.00 (-1.85%)

Life & Career

Video

Tax

Your Money

Social Sharing

7 ways salaried individuals can save taxes

Stay Connected with NDTV Profit

InvestmentYogi.com | Updated On: January 15, 2014 14:36 (IST)

Tweet

112

21

Recommend

966

Follow

8
Like

Ads by Google
New India Companies Act Custom CSR Solutions To Help Your Company Navigate The New Act.
csrindia.charity.org/

More From Your Money

7 New Year's Resolutions
To Be Rich This Year

Portfolio

At the end of every financial year, many tax payers frantically make
investments to minimize taxes, without adequate knowledge of the
various available options. The Income Tax Act offers many more
incentives and allowances, apart from the popular 80C, which could
reduce tax liability substantially for the salaried individuals. Here are

Easily create high-quality PDFs from your web pages - get a business license!

77.3K followers

5.8k

Advertisement

Cardless Withdrawal From

seven smart tips to help you save more and reduce taxes.

ATMs: How It Works

1. Salary Restructuring
Switching Your Home Loan
Lender? Things to Know
2014: Executives Get 1012% Pay Hike
New ATM Rules: High Court
Notice for SBI
Deadline to Exchange Pre2005 Notes Extended

Restructuring your salary may not always be possible. But if your

company permits, or if you are on good terms with your HR
department, restructuring a few components could reduce your tax
liability.
Opt for food coupons instead of lunch allowances, as they
are exempt from tax up to Rs. 50 per meal
Include medical allowance, transport allowance, education
allowance, uniform expenses (if any), and telephone
expenses as part of salary. Produce bills of actual expenses
incurred for these allowances to reduce tax
Opt for the company car instead of using your own car, to
reduce high prerequisite taxation.

Advertisement

MORE FROM NDTV

2. Utilizing Section 80C
Section 80C offers a maximum deduction of up to Rs. 1,00,000.
Utilize this section to the fullest by investing in any of the available
investment options. A few of the options are as follows:
Public Provident Fund
Life Insurance Premium
National Savings Certificate
Equity Linked Savings Scheme
5 year fixed deposits with banks and post office
Tuition fees paid for children's education, up to a maximum
of 2 children

3. Options beyond 80C

If you have exhausted your limit of Rs. 1,00,000 under section 80C,
here are a few more options:
Section 80D - Deduction of Rs. 15,000 for medical insurance
of self, spouse and dependent children and Rs. 20,000 for
Easily create high-quality PDFs from your web pages - get a business license!

A Super Techie Phone

PK Box-Office Review:
From a Brand New Brand Next Target Rs 500 Crore

MORE FROM THE WEB

of self, spouse and dependent children and Rs. 20,000 for

medical insurance of parents above 65 years
Section 80G- Donations to specified funds or charitable
institutions.

11 Tips to Declutter
NowU

9 Reasons You Must

Travel to Russia
Caliser

Sponsored Links by Taboola

4. House Rent Allowance

Are you paying rent, yet not receiving any HRA from your
company? The least of the following could be claimed under
Section 80GG:
25 per cent of the total income or
Rs 2,000 per month or
Excess of rent paid over 10 per cent of total income

Top Gainers

Top Losers

Most Active

NSE

Company

Price (Rs.)

BSE

CHG %

PIPAVAVDOC

46.45

14.69%

GPPL

223.60

12.50%

If HRA forms part of your salary, then the minimum of the following
three is available as exemption:

PERSISTENT

1,874.35

8.14%

The actual HRA received from your employer

The actual rent paid by you for the house, minus 10 per cent
of your salary (this includes basic dearness allowance, if
any)
50 per cent of your basic salary (for a metro) or 40 per cent
of your basic salary (for non-metro).

SOUTHBANK

30.90

6.55%

This deduction will however not be allowed, if you, your spouse or

minor child owns a residential accommodation in the location where
you reside or perform office duties.

More from Top Gainers

DON'T MISS

5. Tax Saving from Home Loans

Use your home loan efficiently to save more tax. The principal
component of your loan, is included under Section 80C, offering a
deduction up to Rs. 1,00,000. The interest portion offers a
deduction up to Rs. 1,50,000 separately under Section 24.
6. Leave Travel Allowance
Use your Leave Travel Allowance for your holidays, which is
Easily create high-quality PDFs from your web pages - get a business license!

Michael Slater Calls Anushka

Sharma 'Virat Kohli's Wife'

MS Dhoni Wants Mike Hussey as

Team India Coach: Report

available twice in a block of four years. In case you have been

unable to claim the benefit in a particular four- year block, you could
now carry forward one journey to the succeeding block and claim it
in the first calendar year of that block. Thus, you may be eligible for
three exemptions in that block.
7. Tax on Bonus
A bonus from your employer is fully taxable in the year in which you
receive it. However request your employer for the following:
If you anticipate tax rates to be reduced or slabs to be
modified in the subsequent year, see if you could push the
bonus payment to the subsequent year
Produce your tax investment details well before, to prevent
your employer from deducting tax on bonus before handing it
over

A Final Word
Keep in mind the below points, to avoid the hassles of last minute
tax planning.
Give your employer details of loans and tax saving
investments beforehand, to prevent any excess deduction
Check the Form 16 received at the end of each year from
your employer thoroughly
It is important to start your tax planning well before 31st
March, and to file your returns before the 31st of July each
year

Often Overlooked Method to Pay Off

Mortgage
LendingTree
sponsored

40 50 :

Lenovo's 4G Phone to Compete With

Xiaomi Redmi Note 4G, Micromax's
Yu Yureka on Price

After-School Snacks Your Kids Will

Love
Around the Table | Bush's Beans
sponsored

Ajinkya Rahane, Ravichandran

Ashwin in Fray to Become Virat
Kohli's Deputy

Micromax Yu Yureka Review: It's Mi

Against Yu

InvestmentYogi.com is a leading personal finance portal.

Disclaimer: All information in this article has been provided by
InvestmentYogi.com and NDTV Profit is not responsible for the
accuracy and completeness of the same.

Kate Middleton's Appearance at

Recent Public Outing Is Quite
Mamas Latinas
sponsored

Story first published on : January 10, 2014 12:04 (IST)

Tags: tax saving, Income tax
Easily create high-quality PDFs from your web pages - get a business license!

Aamir Khans PK Breaks More Box

Office Records

Sponsored Links by Taboola

FROM THE WEB

AirAsia's Chief Responds Quickly

and With Compassion

The Only 3 Buffett Stocks Signaling

'Buy'
Profitable Trading

The Systems Architecture

Used by Facebook, Google,
and Amazon

Social Security: How To Get

$1,000 More a Month

Top 8 Deadliest Prisons in

the World...Scary

Newsmax

The Daily 8

sponsored
Promoted Links by Taboola
Advertisement

Nutanix
by Taboola

MORE FROM NDTV

Imran Khan Marries Former

BBC Presenter: Reports

Salman Khan Flirted With

Bhagyashree While
Shooting Maine Pyar Kiya

MORE FROM THE WEB

Brilliant Brows in 3 Simple Steps (DERMSTORE)
What the Bible Says About Money (Shocking)
(Newsmax)

1 Dirty Little Secret To Eliminate 15 Years Of

Mortgage Payments (LowerMyBills)

Sachin Tendulkar: Master

Blaster Turns Master Chef in
New Year

MORE FROM NDTV

Aishwarya Rai Bachchan's Brand New Look for
TV Commercial
Happy New Year: Shah Rukh Khan and AbRam's
First Picture of 2015
Sachin Tendulkar 'Opens' New Year With

Easily create high-quality PDFs from your web pages - get a business license!

Poll

Will Land Acquisition Ordinance Give

Infrastructure a Big Push?
Yes
No

No

8 Signs to Call It Quits on a Relationship

Paratha, Curd, Pickle

(The Daily 8)

Sachin Tendulkar: Master Blaster to Master

Chef!

Curvy Model of The Month: Kamie Crawford

(Essence)

1 Unusual Food That EASES and Potentially

ERASES Arthritis (Spring Of Life Supplement)

Inside Sanjay Dutt's New Year Party

Maine Pyar Kiya, 25 Years Later: 10 Things You
Didn't Know

Promoted Links by Taboola

Tweet

21

112

Recommend

966

Related News

Bhushan Steel Says

Sebi Order Won't Hit
Business

Bhushan Steel
Promoters Among 260
Sebi-Barred Entities

Government Approves
8.75% Interest Rate on
PF Deposits

LIC Transfers Rs 1,644

Crore Surplus to
Government

Related Videos

9:15

Jaitley Should Hike

Section 80C Limit to
Rs 3 lakh: KPMG

13:17

Expecting a Reformist
Budget: Deven
Choksey

0:39

Tax Your Brain: Expert

speak

Easily create high-quality PDFs from your web pages - get a business license!

33:16

Many more steps to

boost economy soon:
Chidambaram

Can't Say

Vote

View Results

For Profit Update,

Like

69k

Follow

Follow

Ads by Google
Personal Loans up to $20K Good Credit & Fair Credit Welcome. Apply Now! Decision In Minutes.
www.avantcredit.com/_Personal_Loans

COMMENTS

Post to Facebook

Post to Twitter

SHOWING 1-10 OUT OF 10 COMMENTS AND 4 REPLIES

Anonymous | 8 months ago

Please note if your home loan interest is crossing 1.5 lac and that property is on rent than you can even claim more than 1.5 lac which is your actual interest pa
for the property

Jay | 8 months ago

Can i Declare my dependents LIC under 80C so totaly 2Lakhs 1Lakh for me and my Dependent LIC 1Lakh ?

Easily create high-quality PDFs from your web pages - get a business license!

Prashant | 13 months ago

Nothing new to know in this article...just the same old stuff

raj | 13 months ago

Why bother? In a few months BJP government is going to do away with income tax :)

rag | 13 months ago

its only salaried people have to pay taxes at sources.. and also tell govt what they are doing with rest of money. again tax on it. Politicians
to what they loot. Jai hind

Rowan James | 13 months ago

It's also important to understand that taxes are not based on your gross income, but rather on a "taxable income" that can be reduced by deductions or "writeoffs."

S Senthil Selvadurai | 13 months ago

Doesn't Provident Fund (Employee contribution) comes under Section 80C? Please let me know

Kalyan Deb | 13 months ago

The most effective way is by dodging. Jai Ho!

Deepak P | 13 months ago

Author of this article is ill-informed. No mention of rajiv Gandhi equity scheme under 80 CCG wherein if your taxable salary is 10 lacs or less per annum you ca
invest up to 25000 INR max. and avail a tax saving of 5000 INR

Vasi Ansari | 1 year ago

Easily create high-quality PDFs from your web pages - get a business license!

Can i save tax by paying my own education loan.

Advertise | About Us | Feedback | Disclaimer | Investors | Complaint Redressal

Market Data provided by Accord Fintech.

Easily create high-quality PDFs from your web pages - get a business license!

Copyright NDTV Convergence Limited 2015. All rights reserved.