8 Salary Perks to Save Income Tax Up to Rs 1.35 Lakh in the Old Tax Regime Post-Budget 2025
As the Budget 2025 unfolds, taxpayers are keen to understand how to optimize their salary packages to minimize their tax liabilities. Sudhir Kaushik highlights eight essential salary perks that can help you save up to Rs 1.35 lakh in the old tax regime. Here’s how you can structure your salary smartly!
1. House Rent Allowance (HRA)
If you live in rented accommodation, HRA can significantly reduce your taxable income. Ensure you submit rent receipts to claim this exemption effectively.
2. Leave Travel Allowance (LTA)
Utilizing LTA for travel expenses can provide substantial tax benefits. Plan your trips wisely to make the most of this allowance.
3. Meal Coupons
Employers often offer meal vouchers or coupons, which are exempt from tax up to a certain limit. This perk not only enhances your salary but also keeps your tax liability in check.
4. Provident Fund Contributions
Your contributions to the Employee Provident Fund (EPF) are eligible for tax deductions. It’s a win-win, as you save tax while building a retirement corpus!
5. Medical Reimbursements
Claiming medical expenses through your employer can provide tax exemptions. Make sure to keep all medical bills handy to maximize this benefit.
6. Education Allowance
If you have children, you can claim tax benefits on education expenses. This allowance can cover tuition fees and save you a neat sum in taxes.
7. Insurance Premiums
Premiums paid for health insurance are eligible for deductions under Section 80D. Opting for this coverage not only secures your health but also your finances!
8. Tax-free Bonuses
Bonuses can be structured to fall under tax-exempt categories, which can help you retain more of your hard-earned income.
Incorporating these salary perks into your compensation structure can lead to significant tax savings. For more insights on optimizing your salary and benefits, visit looffers.com. Remember, smart planning today can lead to a wealthier tomorrow!
