An employer will always deduct tax deducted at source (TDS) from your salary if your salary income crosses the threshold limit. However, there are a few things that you could do to reduce your tax liability that arises from TDS being deducted from your salary.
If your salary break-up does not include travel allowance, you could request your employer to include the same in your salary break-up. Please note, that has a honest tax paying citizen you should be incurring the travel allowance expenses, before claiming an exemption. Travel allowance is exempted up to Rs 800 per month, or Rs 9600 each year.
Similarly, you can claim medical Reimbursement upto Rs 15,000 each year against your medical bills. Each time you visit the pharmacy or the doctor make sure you take medical bills or consultancy bills and hand the same over to your employer, so as to reduce your TDS liability.
If your company is not offering food coupons or meal vouchers, you can ask them to consider a proposal. A sum of Rs 50 per meal is exempt on meal vouchers. This means that for a 25 day a month working period, meal vouchers can be tax exempt to the extent of Rs 2,500 per month, considering lunch and dinner (Rs. 100 x 25 days).
This means annually a sum of Rs 30,000. Thus, if you are in the 10 per cent tax bracket you can save as much as Rs 3000 on taxes by way of meal coupons and Rs 6000, if you are in the 20 per cent tax bracket and Rs 9,000, if you are in the 30 per cent tax bracket.
Apart from the above, to save TDS on salary make sure you utilise the entire amount by investing in section 80C and other instruments.
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