1. #1
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    How to reduce the Income Tax being charged from my salary?

    I joined as a fresher in an IT company and find that there is some income tax being deducted every month from my salary. Explain me how income tax is calculated and Please suggest me what i can do in order to reduce the amount being deducted as Income Tax.

  2. #2
    Support Array
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    Re: How to reduce the Income Tax being charged from my salary?

    There are many ways of reducing the income tax. The amount that is taxable from your salary is the one more than 2 lakhs. For example, if your salary is 3 lakhs per annum, then the income tax will be charged for 1 lakh and the annual income tax to be paid by you would be 10 % of it i.e Rs.10000. There would be some components in your salary which would not be taxable like HRA, Transport Allowance, amount paid by you and your employer as PF etc. After deducting all these components, the sum remaining would be considered for tax. You need to show proper investment for that amount in order to make your total annual tax to be zero. Some of the things that you can do are like submit the rental slip if you stay in a rented house, buy some bonds, have some amount in fixed deposit, submit documents for interest you pay on house loan or education loan taken by you etc etc . There would be many things to be done.I suggest you to visit your accounts department and get a clarity on total taxable amount and submit the investments accordingly.

  3. #3
    ankur001.ak Array
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    Re: How to reduce the Income Tax being charged from my salary?

    income tax is cut as per taxable limits published every year during financial budgets calculate your gross salary and deduct the taxable income as per norms laid then see the quanta of money that is being chargedas tax now plan aacordingly spent that amount in diversified ELSS ,PF ,MEDICLAIM INSURANCE POLICY , HOME LOAN ETC THAT ARE OUT OF PURVIEW OF TAX and help you in saving tax.

  4. #4
    VonsVishakha Array
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    Re: How to reduce the Income Tax being charged from my salary?

    the best way to reduce the payable tax is to take some policies or do some investments like PPF, SIP, LIC ... etc. There are many more avialable tax saving options. Explore it with your HR and other employees. The only thing you need to ensure is produce all the documents for the policies you have taken to the company. these policies not only save you tax but give long term benefits also. But before investing do consider your long term plans and invest accordingly. You must ensure that you should not over invest and take yourself to the financial crisis... All the best

  5. #5
    venomous Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Hello friend,

    As far as reducing the income tax salary from your salary is concerned most of it is already addressed in your CTC.But to further reduce your TAX you can adhere to some very basic methodologies like :-

    1) Invest in Medical insurance

    2)Gift money to your major children and Save tax on Future Income

    3)You can save taxes by investing up to Rs.1 lakh in a pension plan

    4)Life insurance premium entitles you to a deduction up to Rs.1 lakh

    5)In order to save taxes you can invest Rs.1 lakh in the equity market via ELSS

    Hope it Helps!

    Thanks and visit again.

  6. #6
    Sumit06101987 Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Hi,

    there are many ways of doing this.

    For Mens it is taxable if the amount exceed more than 2 lakhs

    Some components are non taxable like HRA, LTA, Transport allowance etc

    For reducing the tax , show proper investment along with the proof

    You can submit rental slip, show medical bills, buy some bonds or shares, invest in LIC, If you are paying housing loan so the document about the interest, etc

    take help of some of the account person and get it done

  7. #7
    Abhishek Chauhan Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Hello,

    There are many ways by which you can reduce the income tax on your salary.

    At the company level many companies provides you with various vouchers and different perks.

    Now all this comes under the non taxable salary.

    Also if you have taken some kind of Loan.

    Than the loan statements also gets you tax relaxations.

    -Regards

  8. #8
    imman Array
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    Angry Re: How to reduce the Income Tax being charged from my salary?

    ~~ Hi ~~



    ~ Here are some of the ways that reduce your income tax ~


    • Invest money on Life Insurance.


    • You can also go for Medical Insurance for you and your family.


    • Donating some funds to any donation center also reduce tax problem.


    • You can invest money up to 1 lakh in pension plan that will help you in future.


    • You need to pay tax if your annual income exceeds 2 lakhs.



    ~~ Thank you ~~


  9. #9
    prabhu Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Hi,

    Inorder to avail TAX Exemption . Look out for IT Declarations in your company profile and fill the necessary things to avoid IT

    Items that come under Tax Exemption are :
    • Home or Education Loans
    • Home Rent
    • Mutual Funds
    • Insurance Policies(LIC,ICICI etc)
    • Sodexo Coupons
    For more details on TAX Exemption , look out for Income Tax Slab 2012 - 2013 for men on Income TAX slab thread posted in ProfessionalQueries.com

    Note: Valid Proofs need to be submitted for each item .

  10. #10
    looser Array
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    Re: How to reduce the Income Tax being charged from my salary?



    There are many ways to reduce your Income Tax from your Salary:

    Generally you need to pay tax if your salary is more than 12 lacks per annum.

    You have to pay 10% tax on your salary.

    To reduce your tax take some policies like:

    1. Take medical insurance policy

    2. Home loan Policy

    3. Give donations to donation centers

    4. Pension Loan

    5. Life Insurance Policies

    Like this many policies are available and many way are available to save your tax.

    To these policies you will have many benefits in future.



  11. #11
    samarth Array
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    Re: How to reduce the Income Tax being charged from my salary?

    HELLO SIR....

    you can reduce the income tax on your salary.At the company level many companies provides you with various vouchers and different perks.Now all this comes under the non taxable salary.Also if you have taken some kind of Loan.Than the loan statements also gets you tax relaxations.


    ALL THE BEST......

  12. #12
    Ravi Kiran Mohapatra Array
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    Re: How to reduce the Income Tax being charged from my salary?

    HI,

    It can be reduced by
    Medical insurance policy,Home loan Policy,Give donations to donation centers,Pension Loan,Life Insurance Policies and many more.

    Take loans that's how you can reduce the tax more.

    HOPE THIS WAS HELPFUL!!!!!
    GOOD LUCK!!

  13. #13
    Ashok Array
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    Re: How to reduce the Income Tax being charged from my salary?

    ^^#^^Hello^^#^^


    Mostly,it is needed to pay the tax if your salary is more than 2 lakhs.
    You will have to pay 10% tax from your salary.

    Following are the ways that helps in reducing the income tax:-

    (1) home loan policy
    (2) pension loan
    (3) medical insurance policy
    (4) life insurance policy
    (5) house rent
    (6) mutual funds
    (7) education loan
    (8) buy bonds and shares


    ^^#^^Thanks^^#^^


  14. #14
    nikhil202k Array
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    Re: How to reduce the Income Tax being charged from my salary?

    tax.jpg


    Procedure to reduce a Income Tax from salary :
    If you want to reduce a Income Tax from Salary then you have to first prepare a PAN (Permanent Account Number) card and you have to pay online tax or offline tax to the Indian Government .

    You have to give a 10% tax from your income and if you want to gives a slip of proper investment in your Business/Company .If you are belonging from Agriculture department then no need to pay Tax .

    All Farmer are free of tax but Businessman have to pay more tax and in order to make a total Annual income Tax to be zero and you have to give a all Bank details to the Indian Government .

    tx.jpg

    If you are earn more then 2 Lakhs per years and you have to pay a tax and it is applicable after full investing and from remaining amount you have to pay a tax .This is a proper way to reduce a Income Tax from Salary .

    After earning 1,10,000 Rs. to the 1,50,000 Rs. you have to pay a tax of 10% and from 1,50,001 Rs. to 2,50,000 Rs. you have to pay a tax of 20 % .

    And above 2,50,00 Rs. you have to pay a Income tax 30% of your income .If you have any doubt regarding a Income tax related query so,please visit to the Nearest Account tax Department .

    --------------------------------------------------------------------------------------------------------------------------------------------------------------------



  15. #15
    rockindeepak Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Hey

    Some of the ways are

    -apply for food coupons they help in reducing your tax

    -If you stay in a pg or even rented house apply in your company saying that you are giving this much amount for house rent so whatever amount you will be getting as house rent allowance from company will be non taxable and this will reduce your tax drastically.

    -some company provide interest free loans . you can avail those also and every month will be deducted from your salary in turn reducing your tax

    Thanks

  16. #16
    ritesh Array
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    Re: How to reduce the Income Tax being charged from my salary?

    the increment or the yearly increment of your salary happens on the basic salary of the employee and not on the whole salary.
    So the increment will happen on the Rs.3500 and not on Rs.8000.

    As far as increment is considered,It is always calculated on the CTC and it's not at all related with basic salary.And basic salary is computed on the basis of revised package.
    Now all this comes under the non taxable salary.Also if you have taken some kind of Loan.Than the loan statements also gets you tax relaxations.


    HOPE THIS WAS HELPFUL!!!!!
    GOOD LUCK!!*
    ***************



  17. #17
    Rohit29 Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Hello friend.
    It is to good that you pay the income tax to government of our nation.

    By the rule of Indian government those who have annual income is more then 2 lakhs he/she pad the tax.

    The income tax is calculate on annual income. If your annual income is more than 2 lakhs then you pad 10% of total income which you have earn in a year.

    TO reduce the INCOME TAX you have submit some document in your company like:
    1. your all the BIMA policies like (LIC,BAJAJ)
    2. Lone paper (if you taken from any bank)
    3.show medical insurance paper.
    4.show your children fee by taking the fee structure from school/collage.

  18. #18
    G.one Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Hi guest, Saving in income tax can be done by investing the money in various sources. The income tax slab for the year 2012-2013 starts from Rs.2,00,000. Upto to which no tax will be charged. You can get the reduction in your income upto Rs.1,00,000 from the section 80c by investing in life insurance policy, investing in mutual scheme which has been specified in income tax act and investing in provident fund. Donating a amount to certified NGO's are also tax deductible. Medical loan and any kind loan of loan taken, interest on that can deducted from income. Thanx

  19. #19
    Chittaranjan Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Dear asker there are incomtax provisions how a tax payer can reduce his tax burden under income tax act.

    Provisions are;

    on your yearly investments on various items you can save up to rs.100000/- like:

    Investments on kids school tution fees/investment on hbl/investment on nscs/investment on ppf

    if an taxpayr invest's on above items they are eligible to get relief upto rs.100000/-

    so you can reduce your tax burden on above way.

    Thank you,
    investments on child

  20. #20
    ritesh Array
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    Re: How to reduce the Income Tax being charged from my salary?

    There are many ways by which you can reduce the income tax on your salary.At the company level many companies provides you with various vouchers and different perks.Now all this comes under the non taxable salary.Investments on kids school tution fees/investment on hbl/investment on nscs/investment on ppf if an taxpayr invest's on above items they are eligible to get relief upto rs.100000/-so you can reduce your tax burden on above way.

  21. #21
    Arjun Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Dear, asker tax are calculated on the yearly basis and not on the monthly. At the end of the financial i,e 31 march every employee has to pay tax under which tax slab he comes. You can reduce by investing your money to some other purpose like charity, donation, health insurance, child plan this is only in the case of property,but you cannot reduce in the case of salary slip. But you should not do this if you do this you are not helping your country for its growth and development.

  22. #22
    pusy Array
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    Re: How to reduce the Income Tax being charged from my salary?

    In order to reduce the income tax being charged on you, you must produce some documents for which the tax will be deducted.. House rent for example you pay 4k per month then 48k per year.... Insurance 2k per month then 24k per year... Food coupons 2k per month then 24k per year... If you produce these documents you can save the tax for 1 lakh... You can also include other expenditure like medicine, stock market loss, insurance for parents

  23. #23
    manas.career Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Hello,
    If you are getting more that 2 lakh , then you would be charged 10% of amount above 2 lakh .

    If you are getting more that 5 lakh , then you would be charged 20% of amount above 5 lakh and 32000 rupees

    If you are getting more that 8 lakh , then you would be charged 30% of amount above 8 lakh and 92000 rupees

    So in order to save your taxes , you have to invest money in mutual funds, LIC policy ,public provident funds.

    And put the amount you pay per annum in your non taxable amount fields on employees non taxable sheet.

    Thankx

  24. #24
    Devi.career Array
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    Re: How to reduce the Income Tax being charged from my salary?

    Hello Friend,
    in order to save tax there are many ways .
    1-if you are having any loan and you are paying intrest then you can show that
    2-you can invest your money in LIC,mutual funds or any insurances
    3-you can save your money in PPF and show that.
    4-you can show your higher study expense if you are taking any.
    4- if you take any car loan or house loan,house rent then you can claim for your tax relaxation with your company's finance department
    Thank You.

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