Cut income tax by Rs 29,000 under new tax regime: How Gurugram-based Kumar can reduce tax to only 6.9% of income
Remove Ads
Tired of too many ads?
Remove Ads
WRITE TO US FOR HELP
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com .)
Gurugram-based Karan Kumar is a sales manager and doesn't pay a very high tax because his income is modest. He has opted for the new tax regime , which is a good decision as he does not claim too many tax deductions. Even if his company rejigs his pay structure to include some of the tax-friendly perks, he will still pay a higher tax in the old regime.Under the new tax regime, there are no tax deductions and exemptions, but the standard deduction is higher at Rs.75,000 and the tax slabs are wider, with lower rates. Sudhir Kaushik of TaxSpanner believes that there is room for further tax savings in the new regime if Kumar asks his employer to offer the NPS benefit.Under Section 80CCD(2), up to 14% of the basic salary allocated to the NPS by the employer is tax-free. If his company puts 14% of his basic income in the NPS, the monthly contribution will be Rs.11,666, and the annual contribution of Rs.1.4 lakh will cut his tax by around Rs.29,000.The contribution to the NPS will reduce his monthly take-home salary. However, it will not affect his overall liquidity if he reduces the contribution to the Public Provident Fund. Right now, Kumar puts Rs.1.5 lakh in the PPF each year, which does not fetch any tax benefit under the new tax regime. He should reduce this amount to Rs.10,000 a year and channelise the remaining Rs.1.4 lakh to the NPS.He should also continue with his health and life insurance plan despite no tax benefits in the new regime.Paying too much tax? Write to us at etwealth@ timesofindia.com with 'Optimise my tax' as the subject. Our experts will tell you how to reduce your tax by rejigging your pay and investments.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Print
26 minutes ago
- The Print
FSSAI shuts down popular Meghalaya bakery for using newspapers to wrap bread, cakes
In a sweeping crackdown to ensure public food safety, four other eateries were also ordered to close, including Arun Hotel, Maa Kali Hotel, and two fast food outlets. The RB Store outlet is in Police Bazaar area in the state capital. The family-owned bakery has been functioning since 1950. Shillong, Jul 16 (PTI) The Food Safety and Standards Authority of India (FSSAI) have shut down the popular bakery RB Store here for allegedly using newspapers to wrap its items like bread and cakes, in violation of norms, officials said here on Wednesday. Officials said the action was taken following inspections that revealed gross violations of hygiene and food safety regulations. 'These establishments were found to be compromising public health by flouting basic standards. Using newspaper for baking is strictly prohibited as it contains harmful chemicals that can seep into food,' an FSSAI official said. The FSSAI has intensified its drive across the state in recent months, clamping down on shops and eateries found violating safety norms. Several outlets have faced fines, warnings, or closures as part of the regulatory body's efforts to ensure food safety and public health. Under the Food Safety and Standards Act, 2006, violators can face penalties ranging from fines of up to Rs 5 lakh to imprisonment in cases involving unsafe or adulterated food. Repeat offenders may face cancellation of licenses and prosecution under relevant provisions of the law. Further investigations are underway, and officials indicated that more surprise inspections are expected in the coming days. PTI JOP NN This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Print
26 minutes ago
- The Print
CM Mann urges Union food minister to release Punjab's share of Rs 9,000 crore under RDF, market fees
Mann raised the issue of non-allowance of RDF since Kharif Marketing Season (KMS) 2021-22 and insufficient allowance of market fees since Rabi Marketing Season (RMS) 2022-23. During a meeting at Joshi's residence here, the chief minister also requested for quick movement of rice grains from the state to enable space for the current season. New Delhi, Jul 16 (PTI) Punjab Chief Minister Bhagwant Mann on Wednesday sought the intervention of Union Food Minister Pralhad Joshi for the release of state's pending share of over Rs 9,000 crore related to the Rural Development Fund (RDF) and market fees. He emphasized that the purpose of RDF is to promote agriculture and rural infrastructure, including the development of rural roads, marketing infrastructure, storage facilities in mandis, and automation and mechanization of mandis. The chief minister said that despite amending the Punjab Rural Development Act, 1987, in accordance with the Department of Food & Public Distribution guidelines, the Punjab's share in RDF has not been released since KMS 2021-22. Mann stated that Rs 7,737.27 crore under RDF and Rs 1,836.62 crore under market fees are yet to be released by the Centre, a Punjab government's statement said. The chief minister noted that this non-reimbursement has severely impacted the development and maintenance of rural infrastructure and the rural economy in the state. He also highlighted the persistent shortage of covered storage space in the state over the past two years. During KMS 2023-24, he said that the shortage of space led to the extension of the delivery period for milled rice up to September 30, 2024. Mann said that this caused concern among millers during the last Kharif season, making them initially reluctant to lift and store paddy, adding that the issue was later resolved with the cooperation of central government. The chief minister said that for KMS 2024-25, out of 117 lakh metric tonnes (LMT) of rice to be delivered to the Food Corporation of India (FCI), only around 107 LMT had been delivered by June 30, 2025. Mann said that only 80 LMT of rice has been moved out of the state in the last 12 months. He further said that although FCI had planned to move 14 LMT in June 2025, only 8.5 LMT was actually lifted. The chief minister stressed the need for the movement of at least 15 LMT of rice in July 2025 to complete milling by July 31. He said that delays may trigger unrest among millers and hinder paddy procurement for KMS 2025-26, . To optimize storage, he urged the Union minister to adopt a proactive approach to identifying, approving, and hiring covered godown. Mann said that a strategy of converting covered godowns of wheat to rice needs to be implemented. This strategy could free up 7 LMT of capacity for rice storage in KMS 2025-26, he said, adding that this model be adopted nationwide to mitigate space shortages. Raising the issue of 'arthia' (agent) commission, the chief minister said that the Union government had de-linked the commission from MSP in Kharif season 2020-21. PTI SKC KVK KVK This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
26 minutes ago
- Time of India
Tech Mahindra's Q1 profit up 34% to 1,141 crore, revenue rises nearly 3%
Synopsis Revenue at the nation's fifth largest software service provider rose 2.7% from a year earlier to Rs 13,351 crore. Its largest region for business, the Americas that accounts for nearly half of its revenue, posted an almost 6% drop in revenue, but growth in Europe and the rest of the world more than offset the impact.
