Case Study
Tax optimiser: These WFH expenses can help Kumar cut tax by more than Rs 33,000
Details
The Economic Times: Wealth
Date of Publication: 31, Jan 2022
Website: www.economintimes.com
Pune-based IT professional Arjun Kumar earns well but pays a high tax because his salary is not tax friendly and he does not claim all the deductions available to him. Taxspanner estimates that Kumar can save almost Rs 1.35 lakh in tax if his salary structure is rejigged, he opts for the NPS benefit offered by his company and also invests in the pension scheme on his own.
These WFH expenses can help Kumar cut tax by more than Rs 33,000
Pune-based IT professional Arjun Kumar earns well but pays a high tax because his salary is not tax friendly and he does not claim all the deductions available to him. Taxspanner estimates that Kumar can save almost Rs 1.35 lakh in tax if his salary structure is rejigged, he opts for the NPS benefit offered by his company and also invests in the pension scheme on his own.
Kumar should start by opting for the NPS benefit offered by his company. Under Sec 80CCD(2), up to 10% of the basic salary put in NPS is tax free. If his company puts Rs 14,026 (10% of his basic pay) in the NPS every month, his tax will be cut by Rs 52,500. Another Rs 15,600 can be saved if he invests Rs 50,000 in the NPS on his own. Next, he should ask his company for some allowances in view of the work-from-home arrangement.
Gadgets and furniture can be bought by the company and provided to the employee. The employee gets taxed for only 10% of the value of these items. If Kumar gets items (computers, furniture, AC, etc) worth Rs 1.2 lakh in a year, his tax will reduce by almost Rs 33,700.
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These WFH expenses can help Kumar cut tax by more than Rs 33,000
The Economic Times: Wealth
Date of Publication: 31, Jan 2022
Website: www.economintimes.com
Pune-based IT professional Arjun Kumar earns well but pays a high tax because his salary is not tax friendly and he does not claim all the deductions available to him. Taxspanner estimates that Kumar can save almost Rs 1.35 lakh in tax if his salary structure is rejigged, he opts for the NPS benefit offered by his company and also invests in the pension scheme on his own ...
Kumar can reduce tax by up to Rs 1.4 lakh by paying rent to mom, tax free perks, NPS
The Economic Times: Wealth
Date of Publication: 24, Jan 2022
Website: www.economintimes.com
Gurgaon-based IT professional Hemant Kumar earns a decent salary, but almost 12% of it goes into tax. Taxspanner estimates that Kumar can save almost Rs 1.4 lakh in tax if he pays rent to his mother and claims exemption for HRA, some taxable components in his salary are replaced by tax-free perks and he opts for the NPS benefit offered by his company.