Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
Top Headlines »
Open DEMAT Account in 24 hrs
 Income tax returns for FY 2023-24: Keep these 8 tax law changes in mind while filing ITR this year
 ITR Filing 2024: Know who can and cannot file income tax returns using ITR-1 this year
 Income Tax Filing: 10 necessary guidelines that you must be aware of
 Why you should file your income tax returns before July 31
 What is Form 26AS? How to download Form 26AS to file Income Tax Return (ITR)
 Income Tax Return: What are the alternatives to Form 16 that can be used while filing ITR?
 What should you do if your Form 16 data doesn't match your ITR prefilled form?
 Check your Form 26AS, AIS carefully for error-free income tax return filing
 10 ITR filing mistakes which can cost taxpayers dearly
 Income Tax Return (ITR) Filing Deadlines FY 2023-24: A Quick Guide for Different Taxpayers
 ITR Filing FY24: 6 key points taxpayers must know as July 31 deadline looms large

Will you save more tax by opting for the old income tax regime?
May, 20th 2024

Pune-based IT professional Dipti Kulkarni pays low tax because her salary structure is fairly tax-friendly. However, there is scope to bring this down further. TaxSpanner estimates that Kulkarni can reduce her tax outgo by almost Rs.34,000 if her salary structure is rejigged to include some tax-free perks, if she avails of the tax-friendly perks being offered by her company, and invests in the NPS on her own.

Kulkarni should start by asking her company for more tax-free allowances in her package, such as leave travel allowance (LTA). An LTA of Rs.60,000 will cut her tax by almost Rs.12,500. If she opts for the meal coupons offered by her company, her tax will be reduced by around Rs.5,500. Another Rs.10,400 can be saved if she invests Rs.50,000 in the NPS under Section 80CCD(1b). At 33, Kulkarni should allocate the maximum 75% to equity funds.

Though Kulkarni has opted for the NPS benefit from her company, she is not planning to invest more in the scheme. “I haven’t decided whether to opt for the new tax regime or stay with the old one,” she says. Kulkarni wants to avoid the annual hassle of submitting rent receipts and proof of tax-saving investments for claiming exemptions and deductions under the old regime. “I missed the submission deadline this year and a very high tax was deducted from my pay in February,” she says.


While she has a point, Kulkarni can save almost Rs.25,000 in tax if she stays with the old regime and claims all the available deductions and exemptions. These include Rs.1.5 lakh worth of investments under Section 80C, Rs.50,000 contribution to the NPS and medical insurance premium of Rs.25,000 for a health cover for her family.

 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting