8 Ways Salary Hike Affects Your Tax Redemptions

3. Don’t Hire Driver on Your Own

The tactic which goes with leasing a car, same applies in case of the driver too. Rather than hiring driver on your own, ask your company to provide one. If you hire a driver on your own you will be paying him from your net salary which is your post tax income. Therefore it is better if you ask one from your company. For example, is the driver’s salary is Rs.10, 000 per month then the perk value will be Rs.900 per month, saving up to Rs.33, 750 under the 30 percent tax slab.

4. Retirement Savings

Your financial advisors must have suggested you to start saving for your retirement from the very beginning of your carrier. While most of you just ignore it, now its time you should take retirement savings seriously as it will not only secure your future but also can help lower your taxable income. Ask your employer to invest in NPS on your behalf. 10 percent of your basic salary will get fully deducted if you invest in NPS, under section 80CCD (2). . For example, if your employer invests Rs.40, 000 a month, perk value will be Rs.4, 000 per month, which will help you save Rs.14,832 under the 20 percent tax slab.

Also Read:
8 Financial Tips to Make Your Married Life Happy
10 Employees Who Purchased the Companies, They Worked For