Maximise your salary: Guide to tax savings and investment proofs

By Vivek Dubey By Vivek Dubey CNBC-TV18.com CNBC-TV18.com Published Jan 04, 2024 Published Jan 04, 2024

Discover how to maximise your take-home salary by understanding tax savings, investment proofs, and the benefits of different tax regimes.

Investment Proofs

[{"selector":"#anim-12ff3526-8188-4ef0-8dfa-ea6bea7e0743 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.20904491715796%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Submit investment proofs twice a year to save tax and maximise take-home salary.

Proof Submission

[{"selector":"#anim-b154808a-096e-4b0a-993c-1abffd4c1e54 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] If proofs aren’t submitted, employers deduct tax assuming no tax-saving investments.

Tailoring Savings

[{"selector":"#anim-be8fbf77-9574-4651-a575-ff6eb6d8d97c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-18.72277863177122%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Tax savings depend on the investments declared and the chosen tax regime.

Old Tax Regime

[{"selector":"#anim-0831406b-97f5-4d8d-8a41-c8fb5f3171fe [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] HRA, housing loan interest, and other tax-saving components are computed based on proofs.

New Tax Regime

[{"selector":"#anim-23a4718c-5513-4447-a9bd-9f3f74987335 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.499999772451451%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Certain exemptions are available, while deductions for housing interest, rent exemption are not.

Standard Deduction

[{"selector":"#anim-fb5a65ce-0e66-44f0-aba3-7d2161e67e92 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-25.011640051872092%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] All employees get a standard deduction of ₹50,000 per year for tax savings.

Tax-Saving FD

[{"selector":"#anim-41d1e8f1-b634-4c90-9d92-b6f69c586fdb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-36.32812491703959%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Offers deductions up to ₹1.5 lakh per annum under Section 80C.

PPF & NSC

[{"selector":"#anim-7a7d6528-decc-4d59-a2a6-66b0403ee1b9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Long-term investments qualifying for deductions under Section 80C.

NPS

[{"selector":"#anim-4817a286-6d22-4725-95b0-09ef3db167b2 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(0%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Offers exemptions under section 80 CCD (1).

Tax-Saving Sections

[{"selector":"#anim-2ee2e794-da0f-4a41-8ae0-8946c9df97da [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-28.134110787172002%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Various sections within the Income Tax Act enable individuals to save taxes.

Proof Submission

[{"selector":"#anim-6c28c142-c76a-4c20-aa0c-7ac6589614f3 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.22961945131945%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Submitting investment proofs involves providing documents confirming that investments were made as declared.

Kawasaki rings in the new year with 2024 Ninja ZX-6R launch in India

Thanks For Reading! Thanks For Reading! Read Next