Utsav Shah, 32, is worried because he pays a high tax of almost Rs 6,300 every month. Taxspanner.com estimates that Shah can reduce his tax to zero by claiming some exemptions, rejigging his pay structure and investing more. Shah gets HRA, but doesn't claim exemption because he lives in his father's house. If he pays rent to his father, he can claim HRA exemption. This alone will reduce his tax by almost Rs 60,000. However, his father will be taxed for the rent from his son after a 30% standard deduction.

Shah's employer does not allow rejigging of the pay structure. If he can get certain tax-free benefits in lieu of the taxable components he currently draws, his tax comes down further. If the company deposits 10% of his basic pay in the NPS, instead of children's education allowance and ex gratia payment, his tax will be cut by almost Rs 7,500. Shah saves more than he needs to under Section 80C. He should opt for the Sukanya Samriddhi Scheme, instead of the He should also invest Rs 50,000 in the NPS to claim deduction under Section 80CCD(1b). It will cut his tax by Rs 5,000. Another Rs 4,000 can be cut by buying health cover.