5 Replies to “Drawing a monthly salary of Rs 85,000 in the official records.?”

  1. try to show more of allowances U/s 10(14) n if u r paying house rent then ask ur employer to pay u HRA. also u can invest in insurance n mutal funds, u can get a max. deduction of Rs. 100000 U/S 80C

  2. Legal: Take LIC policies, NSE certificates and other specified saving schemes and donations to the CM and PM relief funds.
    Illigal: Take another PAN on your wife name saying that she is working and earning money. (Not for TDS).

  3. You can get in touch with a practrising Chartered Accountant for advice, but avoid committing illegalities as it amounts to evasion of tax and concealment for which heavy penalties may be attracted.

  4. legally u can save any amount , but the rebate for taxation is limited only upto rs 1 lakh under section 80 c ( which incluse Insurance, PPF,PF ). If your salary is 85,000 I think your provident fund deduction itself would be more that rs 1 lakh per year. I paid a tax of rs 1,66,000 on a monthly salary of app 60,000 the provident and superannuation fund deductions itself came to 1,34,000 and i got rebate for 1 lakh only. The other way is to get rebate on house rent if u r getting HRA and staying in a rented house. There is no illegal way if all ur earnings are from salary and payment is made by cheque or bank transfer

  5. Try and negotiate with your employer to provide more tax friendly salary structure like car lease, petrol allowance etc.

    Otherwise, please see if you have option to work as a consultant. Then you can claim expenses like your petrol, depreciation on car, interest on car loan etc as your business expenditure.

    At the same time you can explore opportunities of claiming interest on housing loan, 80ccc exemption upto 100k etc.

    My earnest advice is to consultant a Chartered Accountant who will help you to plan your taxes in a better way for a pittance

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