Four Things you may not know can cut your Income Tax.
(1) Restaurant Bills :- some part of the salary can be paid in the form of food coupons. you can get a part of your salary at ₹ 50 a meal for 22 working days and up to two meals a day. That sums up to ₹ 2200 a month . If someone falls in the 30% tax bracket then this could save up to ₹ 7920 annually in taxes.
(2) Expenditure on your vacation : – when you purchase tickets for vacation travel then the expenditure on tickets can be claimed as leave travel allowance ( LTA) . There is no ceiling on how much LTA can be claimed so it become more interesting . But the fare of your flight must not cost more than the national carrier for the same route . Also this claim is allowed twice in four years . For example if you are planing a trip to manali and your tickets coast you around 21,000 including your spause then you can get benefit of 7000 if you fall in 30% tax bracket . But this claim is only for travel with in India . Important thing is it only covers travel fares not the boarding , lodging and other expenses.
(3) HRA (House Rent Allowance ) :- HRA is given by your employer to cover the house rent paid by you. But working with your employer to fix HRA could be great deal to save tax . But you should have all rent receipts and the agreement with your landlord to avail the tax benefit . But if you go for home loan and want tax benefit on interest paid instead of HRA than watch carefully because the interest is steep and tax benefit on interest is restricted to tax save on 2 lakh annually. So the choice is yours.
(4) Official Reimbursements : – If your employer agrees to make some part of your salary as reimbrusements then this could be a tax saving route . Like phone bills, cab expeses etc . Suppose you get 60,000 annually as reimbursement than you save 20,000 straight if you are in 30% bracket .
So, this is for you read to have an upper hand in tax savings . Read again to become a master . Thanks for the patience .
Must Read : How to Find the Cheapest Car Insurance Rates
Best Internet 4G Data Plans in India
JIO 1500 Phone Booking Started – Where and How To Buy
Are these benefits avaiable to pensioners too?
good and useful advice.thank u sir.
I am a Central Govt employee. My employer reiumbursed Rs.54,000/- towards Hostel subsidy for my daughter. Is there any exemption? If so, what extent?
The term Hostel Subsidy would mean expenses incurred by the Government servant if he/she keeps his/her children in a hostel of a residential school/institution located beyond a distance of 50 kilometers from his/her residence. The reimbursement would be subject to other conditions laid down in the O.M. dated 2.9.2008 and subsequent instructions issued from time to time. It is further clarified that grant of hostel subsidy is not related to transfer liability of the Government servant.
b. To allow reimbursement of Children Education Allowance/Hostel Subsidy for the initial two years of a diploma/certificate course from Polytechnic / ITI / Engineering College, if the child pursues the course after passing 10th standard and the Government servant has not been granted CEA/Hostel Subsidy in respect of the child for studies in 11th and 12th standards.