Income Tax News: Save More! 10 Clever Moves to Lower TDS From Your Salary

Income Tax News

Income Tax News: According to Indian income tax legislation, if an employee’s compensation exceeds a certain threshold, the employer is required to deduct Tax Deducted at Source (TDS) from their pay. Employees are required to provide their “Income-tax declaration,” which includes information about their assets and expenses from the previous fiscal year, prior to the end of each fiscal year.

Introduction to Tax Deducted at Source (TDS)

Undefined on such a statement, the employer routinely deducts taxes at source; depending on the employee’s actual proof of savings and/or investments, this deduction may be made in full or in part for the remaining term. Here are ten strategies to lower the amount of taxes you owe when TDS is withheld from your pay.

House Rent Allowance

An employee must provide the landlord’s name, address, and PAN in order to be eligible for this allowance, and only if the total amount of rent paid during the fiscal year exceeds Rs 1 lakh. Should the landlord’s PAN be unavailable, a declaration on Form 60 ought to be acquired.

Food Coupons

You might ask your employer to take a look at a proposal if they don’t currently offer meal coupons. Meal tickets are exempt up to Rs 50 each meal. This means that meal vouchers can be tax-exempt up to Rs 2,500 per month, including lunch and dinner (Rs. 100 x 25 days), during a working period of 25 days.

Donations To Trust and Charity

If you have contributed to authorised trusts or charitable organisations such as Prime Minister’s National Relief Fund, National Defence Fund, notified temples, etc., an employee may provide proof of donation in the form of a receipt that includes the donor’s name, address, PAN, name of the trust or organisation, registration number, and validity.

Leave Travel Allowance

Similarly, you can always ask your company to include travel allowance in your salary break-up if it isn’t already included. Prior to requesting an exemption, each and every tax-paying person should be responsible for paying the travel allowance costs.

Medical Insurance Premium and Claim

Workers may provide copies of the appropriate bank statement or passbook as evidence of such payment, together with an 80D tax certificate from insurance companies to support the deduction of premiums paid. Additionally, if an employee had a normal physical throughout the fiscal year, they might also need to provide receipts or bills for those visits.

Interest On Loan Taken For Residential Property

In this instance, specifics such as the lender’s name, address, and PAN, as well as a certificate from the bank or other authorised organisation including information on the loan’s date of origin, installment payment amount, and interest rate, must be submitted.

National Pension System (NPS)

A copy of the applicable bank statement extract and the deposit receipt for the total amount deposited during the financial year

Saving TDS using benefits from Sec 80C

In addition to the aforementioned, make sure you invest the whole sum in section 80C and other instruments to save TDS on wages. Investing in PPF is one of the most recommended ways to lower your salary-tax deduction (TDS). The Public Provident Fund (PPF) provides you with an annual tax benefit of around Rs 1.5 lakhs.

Sukanya Samriddhi Account 

To ensure that the TDS deduction from your salary is as low as possible, investing in the Sukanya Samriddhi Yojana is a smart move. In this case, the annual maximum tax exemption that you are eligible to receive is 1.5 lakh rupees. Section 80C of the Income Tax Act of 1961 applies to it.

Tax Exemption for HRA

You are eligible to claim the tax exemption for house rent allowance (HRA) if you live in a rented home and in a salaried job. You would be able to partially reduce your TDS load with the HRA. Please remember, too, that this deduction is limited to expenses associated with rental property.

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