Ways to Save tax smartly if Salaried?

May 27, 2009

Below listed question will guide you to save tax in much smarter ways

Q1. Do you need a house? Does your employer offer Rent Free Accommodation or House Rent Allowance?

Then go for it, as the amount gets deducted from your total taxable income.

Q2. Does your company expect you to wear uniform at work?

If so, the expenses incurred on buying and maintenance the uniform will not be taxed.

Q3. Does your employer provide you with allowance for your children’s education and hostel accommodation?

Then use it to claim exemption under section 10 (14).

Q4. Does your company provide you with a telephone facility in your home?

Then it is not taxed. However, be warned against taking telephone allowance, since it is totally taxable and will increase your taxable income.

Opt for the car facility, since the value of the perk is much lower than the actual expenditure incurred on the car.

Source: Rediff