How to save Tax?

Question

Hi i am working with a MNC my CTC is 2.28 Lacs P/A (Net)

every month there is a deduction of Rs.860 (200 Professional Tax + 660 Income Tax)

plz help me and advice how much Money should i invest every month to save my Income Tax ? i am leaving in a rented house,

My HRA + Basic is around 13 K approx

pl advice .

Answer 1

To learn about HRA, conveyance, medical and other deduction of allowances, read

Income From Salary

http://mytaxes.in/index.php?topic=17.0

Answer 2

You cannot save anything on professional tax front.

You can save Rs660/- from Income tax.

You can invest Rs1.00 in insurance, PPF and Post office savings and mutual fund investment.  You can also save tax, if you buy medical insurance, for a premium up to Rs10,000/-pa.

You can also avail the benefits, in case of children studying, a portion of such expenses are exempted.

If it is properly planned, you can save Rs7,920/- .

Why not consult a professional and experts like chartered accountant?

Answer 3

Posting of this question is not in order.

You have addressed your problem to 'Hi'

What is the meaning of "HI" and who is 'Hi' ?

The last wordings are  'My HRA + Basic around 13 K approx.    around and approx words will restrict you to get any correct answer. Also CTC is 2.28 Lacs P/A (Net)

Anyhow if your monthly income is Rs. 13,000/- and getting in the shape of Basic and HRA. And you are living in a rented house. In such a case your tax liability is NIL.

As far as the professional tax is concerned there is no way to avoid it as far as you are a employed person.

Answer 4

Professional tax is the Govt's right - you cannot save anything here.

Since the tax is not huge, you can show 15000 as medical bills which itself would bring down your tax liability. In addition looks for about 10000 per annum (it is difficult to say the number without knowing your salary breakup - the net alone does not help).

Assuming  about 2000 rent per annum, your tax comes down to about 200 a month - this can be less if your correct pay structure is understood. I suggest you download the calculator from http://prrajan-tax.blogspot.com/2008/03/... and populate the fields as mentioned.

Answer 5

- Submit the rental receipts of around 5000~6000 Rs OR actual to your Accounts Department.

- You can show investment worth Rs 1,00,000 per year and which could include your P.F. + N.S.C + Insurance Policy Premium.

--> For this you can use your father's insurance permium if he is dependent on you.

--> You can invet up to 1,00,00 as I mentioned.

- The other option is to buy a home and start a home loan. I am not sure you can do this or not.