8 Ways Salary Hike Affects Your Tax Redemptions
Bangalore: As the season of assessment is on many of you must be expecting hikes in your salary, there is something else you shouldn’t forget among all the celebrations, i.e. is your tax obligations. May be a highly paid executive or a junior level staff, tax payment liabilities can’t be ignored in any case. Though the budget 2013 has not left many opportunities that can reduce your tax obligations still there are loop holes which can help you save a lot of money. Here are eight ways listed by Economic Times through which you can reduce your tax outgo.
1. Lease Rather Than Buying
If you are planning to buy a new car, better you drop the idea. While buying a car will just drain money from you pocket, there are ways by which you can have a car and make it a reason to fetch tax redemption as well. Despite of buying a car you can ask your company to lease one according to your salary structure. A leased car is a taxable perk, but it also depends on the size of the car. For example, if the price of the car is 8 lakhs, perk value will be 28, 800 per year which will help you save 2.4 lakhs under the 30 percent tax slab.
2. Use Company's Technologies
If your employer has provided you with a computer, laptop or tablet for professional as well as personal use, it will be taxed only 10 percent of the principle amount. If the price of laptop is 60, 000, the perk value will be rs.6, 000 and tax saved will be 16, 686, under the 30 percent tax slab.