• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • About Us
  • Executive Team
  • Investors
  • Privacy Policy
  • Terms Of Use
  • Contact Us

  • Blog
  • Tax Services
    • E-file ITR for Salaried
    • E-file ITR for Business
    • TDS E-file for Business
    • Manage Tax Practice
  • Tax Optimizer
    • Optimize Tax – Salaried
    • Optimize Business Tax
  • Help
    • FAQs
    • Glossary
    • Resources
    • Product Tour
    • Tax Calculator
  • Efiling
  • Income & Investments
  • Tax Compliance
  • Tax Optimization
  • Tax Refunds

Salaried Vaz can cut tax outgo by investing in NPS

January 23, 2017 by Sudhir Kaushik Leave a Comment

Dilip Vaz does not have too much scope to reduce his tax because his employer does not allow tweaking of the pay structure. Taxspanner estimates that he can bring down his tax by around Rs 8,652 if he invests more for retirement and buys medical insurance for his family.
Vaz should invest Rs 50,000 in the NPS under Section 80CCD(1b). This will reduce his tax by Rs 5,150. He should also buy medical insurance for his parents and his family. An annual premium of Rs 30,000 will cut his tax by around Rs 3,000. Avoiding short-term capital gains will also cut his tax.
Vaz is not too keen on investing in the NPS because he doesn’t want to lock up money for the next 28 years. But he has several traditional insurance policies in his portfolio. He pays an annual premium of Rs 1 lakh. These plans neither offer very high returns, nor give adequate life cover. He will be better off if he surrenders a few of these low yield products and puts money in the NPS.
When investing in the NPS, Vaz should opt for a higher equity exposure under the Aggressive Lifestage Fund. At 32, he can take up to 70% exposure to stocks. This exposure to stocks will progressively come down as he grows old. Save tax beyond 80C, Optimize Tax Now!

INCOME FROM SALARY


 

[button style=”btn-danger btn-lg” type=”link” target=”true” title=”Optimize Tax Now!” link=”https://www.taxspanner.com/optimize-tax/” linkrel=””]

 
(As Published in ET Wealth on Jan 23, 2017)

Filed Under: Income & Investments, Tax Optimization

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

E-mail Newsletter

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

More to See

Steps by step guide to e-File Your ITR

November 5, 2020 By Sudhir Kaushik

5 Ways to E- verify Your Tax Return

November 3, 2020 By Sudhir Kaushik

Tags

black money budget 2017 claim refunds claims tax benefits Direct Tax Burden disclosure bank account drastic positive step e-file tax return effectively save tax file correct returns filing returns form 12bb form 16 Form 26AS home loan nps HRA income tax declaration income tax department income tax india income tax notice income tax return income tax saving ITR Form long-term capital gains NPS professional tax advisor return filing deadline section 80c section 80G short-term capital gains Suggestions Budget 2017 tax tax-free tax benefit tax details salaried taxpayers tax efficiency tax filing returns tax limit tax optimization tax payers tax saving tax saving tips taxspanner undeclared income understand tax laws

Footer

Services

  • E-file Tax Returns
  • Tax Optimizer
  • Respond To ITD
  • Consult Experts
  • Tax Practitioners
  • TDS Returns

Help

  • Product Guide
  • FAQs
  • Tax Calculators
  • Glossary
  • Contact Us
  • Forget Password

Taxspanner logo
TaxSpanner is India’s largest and most trusted website that offers online preparation and filing of individual Income Tax Returns (ITR).

Read More

Copyright © 2022 · Span Across IT Solutions Private Limited.