8 Ways Salary Hike Affects Your Tax Redemptions

5. Opt For Home Loan

If you like to have property as your asset and thinking about buying another one, opt for a home loan rather that investing your own money. It will not only add another property into your asset list but also can become a means through which you can reduce your tax liability. If opt for an home loan and after buying it give on rent, only 70 percent of your rental income will be taxable, but you can avail of unlimited tax deduction for the interest paid on the loan.

6. Get Back To Studies

Many people take up jobs just after finishing their graduation and do not think about further education. Well now you can think about it and also make it an option to reduce your taxes. Many employers fund their employees for short term professional courses during the year, you can also ask for one. If your employer is funding Rs.80, 000, the perk value will be Rs. 8, 000, i.e. you can save Rs.22, 250 under the 30 percent tax slab.

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