Tax Refunds

Reducing Tax through restructuring salary, by opting for NPS

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Reducing Tax through restructuring salary, by opting for NPS Mahesh Pandit is not paying a very high tax, but he can reduce it further. Taxspanner estimates that Pandit’s tax can be reduced by more than 80% if his salary is rejigged to include more tax-free perks, he opts for the NPS benefit offered by his company and invests more in the scheme on his own. Pandit should ask … [Read more...] about Reducing Tax through restructuring salary, by opting for NPS

Saving Tax by paying rent to father

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Saving Tax by paying rent to father Vivek Raj has a fairly tax-friendly salary structure but still pays a high tax because he is unable to avail some of the exemptions. Taxspanner estimates that his tax can be cut by over Rs 1.1 lakh if he pays rent to his father to claim HRA exemption and also opts for the NPS benefit his company offers. Raj lives in his father’s house in … [Read more...] about Saving Tax by paying rent to father

Are low-cost ULIPS (Unit linked insurance plans) worth investing?

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Unit-linked insurance plans (Ulips) have been in the news ever since the Budget reintroduced long-term capital gains tax on equity investments. In the meantime, life insurers have carried out course correction and removed some of the shortcomings that nearly drove Ulips to extinction. Should you be interested? The poor reputation of earlier Ulips had much to do with the high … [Read more...] about Are low-cost ULIPS (Unit linked insurance plans) worth investing?

NPS and health cover helps Madhok to cut tax outgo by over Rs.53000

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Gurgaon-based financial analyst Sudhir Madhok earns a high salary, but also pays a high tax. He has not availed of many tax deductions available to him.  Taxspanner estimates Madhok’s tax can be reduced by over Rs 53,000 if he opts for the NPS benefit offered by his company, he invests more in the scheme on his own and buys a health cover for his family. If Madhok opts to put … [Read more...] about NPS and health cover helps Madhok to cut tax outgo by over Rs.53000

NPS Helped Kumar in tax reduction by 34% using NPS

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Krishan Kumar has to pay very little tax but there is scope to cut it down further. Taxspanner estimates that Kumar can reduce his tax by more than 30% if his company offers him NPS benefit and he invests more in the scheme on his own. He also needs to extend the holding period of his investments to minimize capital gains.  Kumar should start by asking his company for NPS … [Read more...] about NPS Helped Kumar in tax reduction by 34% using NPS