• How do I save tax on my salary

How do i save tax on my salary? The tax amount is 36000 per month.

My Salary is 22L p.a, my take home is 112000/- per month
I also receive rent of 16000 per month from my flat.

I have a home loan which has an EMI of 29000/-

My other savings p.a. are
LIC-16000
NSC -50000
SSA -35000
 
I also claim for HRA -30000/- per month.
Asked 4 months ago in Income Tax

- Please share the components of your package and break up of EMI (i.e. principal and interest).

- Principal amount will be allowed as deduction within a limit of Rs.1.50 lacs. Additionally you can invest Rs.50k in NPS.

- Claim interest payment as deduction from house property income.

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

You can claim deductions on the repayment of interest and principal component from the taxable income as per Section 24, 80C and 80EE of the Income Tax Act.

 

Below are 5 tax benefits related to home loans, you can claim:

 

  1. As per Section 80C, the deduction is available with regard to the repayment of the principal component of home loans. The maximum deductions available as per Section 80C could be 150000 p.a.
  2. As per Section 24, the deduction is available for the repayment of interest on home loans up to 200,000 p.a. This deduction is available under the head 'Income from house property'.
  3. An additional deduction of up to 50,000 p.a. is available (subject to the fulfilment of certain conditions) with regard to repayment of interest on home loans as per Section 80EE.
  4. As per Section 80C, you can also avail deductions for registration charges and stamp duty paid for acquiring their property.
  5. Section 24 also allows deduction pertaining to repayment of interest on NRI home loans, even though the property is in pre-construction phase subject to certain conditions.

 

Apart from that, it is advisable to claim maximum tax deductions of Rs 1.5 lakh by investment specified u/s 80C. 

 

80CCD-To encourage the investors to invest for retirement in Nation Pension Scheme, the government allowed addition tax deduction of Rs 50,000 under section 80CCDD.

 

It is over and above Rs. 1.5 lakh limit.

 

80D-Deduction for the premium paid for Medical Insurance up to Rs. 50000 subject to conditions.

 

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

Sir following are the areas to look for

 

a) Still your 80C Pension limit is not exhausted of Rs. 50,000/-

b) There is no details of Mediclaim so it can be claimed

c) You can also claim the benefit of any reimbursement received from the company along with allowance breakup

 

There can be many area which can be planned out but it requried in depth analysis of the structure, your investment set up and total income filing done till date

Vishrut Rajesh Shah
CA, Ahmedabad
744 Answers
18 Consultations

5.0 on 5.0

If you are also owning the house how are you claiming HRA? Is your own house and rented property both in same city?

So are you owning 2 houses or the one on which you are claiming EMI deduction is the one on rent?

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
3355 Answers
33 Consultations

5.0 on 5.0

What is EVPF?

As per my calculation and based on information provided by you the TDS amount should be around 26000 per month and you can further save by investing in NPS 50000 it will save further 15000 p.a. of tax.

Naman Maloo
CA, Jaipur
3355 Answers
33 Consultations

5.0 on 5.0

Hello,

 

Following Tax Savings options can be claimed,

1. Since you have not exhausted the total limit available u/s. 80C, deductions can be claimed here for investments in LIC, NSC, ELSS, NPS, PPF, Principal Repayment of Home Loan, Tax Saving FDs, etc.

2. Medical Insurance and Medical Expenditure through banking channels (for people not covered by health insurance) can be claimed u/s. 80D.

3. 80CCD, an additional deduction up to Rs. 50,000 over 80C for investment in NPS.

4. Interest Part of Home Loan u/s. 24.

Further options for tax saving can be determined based on the complete salary structure.

 

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2219 Answers
7 Consultations

5.0 on 5.0

Hi

 

You may claim home loan principal repayment under section 80C. Additionally, there would be PF also in 80C, so you may claim a total of 1.5 lacs under 80C.

 

The deduction for housing loan interest is provided under section 24 separately.

 

You may invest in a medical insurance and claim deduction under section 80D.

 

Additionally, investment in NPS shall be available as deduction under section 80CCD.

 

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

You need to report all these investments to your employer so that the taxes are deducted accordingly.

 

We may discuss the issues further.

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

1. Claim principal as deduction u/s 80C i.e. within limit of Rs.1.50 lacs. You need to invest more in NPS by Rs.50k. It will save you tax of Rs.15600.

2. Claim interest of Rs.224085 against net annual rent of Rs.1,34,400 and the remaining loss of Rs.89,685 can be set off against salary income which will further save tax of Rs.27,624/-. Total saving of tax is Rs.43,224/-.

3. I may assist you in ITR filing.

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

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