Tax optimiser: How salaried Karthik can save Rs 1 lakh tax via perks, NPS
Hyderabad-based software engineer Ganesh Karthik pays a high tax because his pay structure is not tax friendly. House rent allowance is the only tax-free portion of his salary and that too gets partially taxed. Taxspanner estimates that Karthik can save almost Rs 1.1 lakh if he gets some tax-free allowances, his company offers him NPS benefit and he invests in the scheme on his own.
Karthik should start by asking his company to reimburse his vehicle fuel bills. If he gets Rs 6,000 a month, his tax reduces by Rs 22,500. Next, he should ask for reimbursement of telephone and newspaper bills. If he gets Rs 1,000 per month for each, he can save Rs 7,500 in tax. If he gets Rs 60,000 as LTA, he can save Rs 18,720 in tax. Food coupons worth Rs 22,000 will save him Rs 6,800. These perks are tax free against submission of bills.