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
HRA
To Lower Tax Outgo Opt for ‘Consultant’ Status
Are you considering shifting from an employment arrangement with your company to a ‘consultant’ status to lower tax outgo leading to higher take-home package? As consultants you are required to pay a flat 10 percent tax on income while an employee is taxed as per applicable slab, the highest being 30 per cent along with surcharge. The dilemma of whether to take up the … [Read more...] about To Lower Tax Outgo Opt for ‘Consultant’ Status
Why Salaried Verma Should Get Employer To Stop HRA, Save Tax
Sudhir Kaushik of Taxspanner.com advises readers on how to restructure their income, investments and expenses to optimise their tax. Here is what he means when he says "stop HRA, save tax" Sujeet Verma pays almost 10% of his take-home pay in tax because his salary structure is not tax-friendly. Though his company does not allow tinkering with the pay structure, Taxspanner … [Read more...] about Why Salaried Verma Should Get Employer To Stop HRA, Save Tax
