Financial year are the dark side of any employee, whether public or in the private sector. This when some think of how much is set for their tax. Employees unlike other common people in unemployment world cannot escape the revenue authority. Set rules and regulation deals with individual who happen to escape tax as interest is gain each time a delay happens.
Good news to the employee, there are several ways you can save and lower you tax payment. According to the turn of economy where everything has a tag prices. We all wish to have channels we can slash down some budgets. Here in this article we see ways to save on tax.
Request your transport allowance as part of your salary
In India government doesn’t take tax on transport allowance. This is a fund given to help in commuting from your house to the work place. It also stands in for any other place you will commute for work place matters. You can request you employer or head of finance to calculate your salary in a way you will receive the transport allowance intact.
Have the tax benefits on rent payments
Employees can request for tax benefit from the HRA. This can be fully and even halfway relieved from paying tax. In some case employees have built their own home and don’t need to pay rent. Such kind can either be fully or half way realized from paying tax.
Ask for food coupons
Counted for as RS 55 per day you can ask for the amount to be counted as food coupon. This amount add up to RS 26,400 yearly doesn’t have any taxed fixed to it. Employer and head of financial can help by counting salary in terms of coupons thus saving on the tax.
Give your medical bills on time
All government employees get medical funds which add up to RS 15,000. The employee need to submit the consultation and other medication documents to the. Giving the documents early helps in you to avoid tax on the amount to be given.
Submit the vacation papers on time
Leave travel is compulsory for the government employees. They can use this to evade tax on the expense to be used for the leave. However for some employees this is not compulsory.
Purchase insurance for your family
Insurance is the best plan which can cover you family and help them gain in future. You can claim funds p to RS 25,000 which is an act 80D. You also can have the second insurance cover for up to RS 30,000 for your parents.
Basically the above tips favor all salaried people in India and other countries at large. It depends on the policies which govern you department. Remember to submit all the important documents before for them to be valid. Tax is what help country’s economy to grow and give the different development. However it’s also nice when an employee can save up and have a share on the salary which is tax free.