Income tax saving method for a salaried person

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Income tax saving method for a salaried person

I have recently joined a job with a package of 4.2 lacs pa. I need to know how much tax will be deducted from my salary and what are the ways I can save my tax? I would like to invest at an early stage so that I get both tax saving and returns.

Profile photo of Monika Asked By: Monika 1 replies 1 helpful answers Last Updated: 8 months ago
  • Profile photo of MonikaMonika
    Participant

    I have recently joined a job with a package of 4.2 lacs pa. I need to know how much tax will be deducted from my salary and what are the ways I can save my tax? I would like to invest at an early stage so that I get both tax saving and returns.

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    Hi Monika,

    Your salary structure will generally include certain allowances and perquisites (ex. HRA, LTA, Conveyance, Medical Reimbursement, Telephone Reimbursement, Meal Passes, etc.) which can be claimed as tax exempt if you submit the bill of such expenses to your employer.

    Apart from this there are several other investment or expenses related deduction under section 80 of the IT Act which can help you in reduction of your taxable income and tax liability.

    For more details you can follow below links

    How to Earn Rs 10 Lakh and Yet Not Pay Tax? https://blog.hrblock.in/tax-planning/how-to-earn-rs-10-lakh-and-yet-not-pay-tax/

    Guide on section 80C deductions  https://www.hrblock.in/guides/income-tax-deductions-80c.aspx

     

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