Tax Saving Tips: The new financial year i.e. 2024-25 started last week. With this, the new season of tax saving and tax filing has also started...
The new financial year has started from 1st April. With this, the new season of saving tax and filing income tax returns has also started. Although the process of saving tax continues throughout the financial year, there are some measures which can be implemented only at the beginning of the financial year.
House Rent Allowance (HRA): If you get HRA from your employer, then you can avail tax exemption on the rent of the house in which you live. If you inform the company about this now, tax will not be deducted from your salary.
Leave Travel Allowance (LTA): The company provides a leave travel allowance for you and your family to travel. Rebate is available on the amount spent on plane, train or bus tickets for travel. This exemption is available twice every four years.
Internet and phone bills: The Income Tax Act exempts the amount paid from internet and phone bills from income tax. Under this, you can get a benefit on the amount which is under this head in your salary or you have paid the bill.
Food Coupons: Many companies provide food allowance to their employees through pre-paid food vouchers/coupons. Under this, Rs 50 for one meal is tax-free. In this way, by using such coupons, the salary of Rs 2,200 per month i.e. Rs 26,400 per year can be made tax-free.
Fuel and travel reimbursement: If you travel by taxi or cab for office work, getting it reimbursed is tax-free. If you are using your own car or a car provided by the company, you can claim the payment for fuel and maintenance expenses tax-free.
Apart from these, the salary also has components like children's education allowance and allowance for newspapers and magazines. You can talk to the company at the beginning of the financial year and get these items adjusted in your salary as per your requirement, which will help you save maximum tax.
