7 Replies to “i am a software engineer, in this assessment year i paid 97000 rupees as income tax, how can i reduce my tax.?”

  1. I’m also facing same kind of problem.

    For first 1.15 lak. u don’t have tax
    for next 1 lak. u can show Insurance premium (80cc)
    for next 1 lak. u can give medical bills, etc.

    rest you cant do any thing so for max of 3.15 lak of your annualsalary you can get tax benefit. rest you have to pay no other option.
    Do you understand now why india is a fast developing country 🙂

  2. take a home loan 100000 from interest 150000 from principal.

    invest in ULIP or ELSS with in a closed ended schem invest one lakhs and get a tax reduction upto 33300.

  3. Why can’t u people give donation to the orphonage home, old age home ,so that they will also be benifited & u will also get tax free. Please think about this

  4. 1. Many salary allowances are not taxable. Work out a salary breakup so that you get maximum benefit from deductible allowances. For salary breakup to get maximum deductions, read:Income From Salary http://mytaxes.in/index.php?topic=17.0

    2. Invest l lac under 80C/80CC/80CCD. Read Read about Investments based Deductions from the Income: Section 80C, 80CCC, 80CCD, 80CCE http://mytaxes.in/index.php?topic=24.0

    3. Buy a property so that you can get benefit of home loan deduction. For home loan interest and capital deduction, read http://mytaxes.in/index.php?topic=9.0.

  5. Deduc. u/s – 10
    Vehicle Allowance – Rs. 800 per month.
    Education Subsidy – Rs.100/- per month per child.
    Rental accommodation – HRA – 10(13A)
    Leave Travel Assistance.
    Medical reimbursement upto Rs. 15000/-

    Deduc. u/s 16
    Tax on Employment

    Loss from house property – 192(2B) – Interest paid on borrowed capital (housing loan) up to Rs. 1,50,000/-

    Deductions under Chapter VI A :

    Repayment of interest on education loan upto Rs.40000/- for 8 yrs – u/s 80E
    Ext. of Rs.15000/- to 20000/- invested in medical insurance premium.- u/s 80D
    Ext. of Rs.50000/- to 75000/- incurred in the treatment of retarded dependant.- u/s 80DD
    Ext. of Rs.40000/- to 60000/- incurred in the treatment of chronic diseases.- u/s 80DDB
    Ext. of Rs.40000/- if individual is blind / handicapped / retarded.- u/s 80U
    Donations to charity – u/s 80G

    Deduc. u/s 80C
    1) Contributions to EPF, VPF, FPS, Approved Superannuation Fund.
    2) Contributions to PPF.
    3) To premium paid for Life Insurance Policy of self/spouse/children, ULIP, Dhanraksha.
    4) To NSC VIII issue / accrued interest on NSC.
    5) To schemes of PSU’s providing long term housing finance.
    6) Time deposits with Post Office.
    7) To ELSS of Mutual Funds.
    8) Repayment of home loan principle.
    9) Tuition fees of full time education for 2 children – Rs. 12000/- each.
    10) Investments in Infra-structure bonds.
    11) Investments in Bank Fixed Deposits for 5 years.
    12) Investment in Pension fund.- u/s 80CCC

    H.R.A. Least of the following is deductible :

    •Residence in metro – 50% of salary , elsewhere – 40%
    •Actual H.R.A. received.
    •Excess of rent paid over 10% of salary.

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