3 ways to further reduce taxes under new tax regime

1: Employees’ Provident Fund

Your employer matches your EPF contribution every month. The employer’s amount can be used for a tax deduction.

2. Flexi benefit plan

Many companies offer FBP as part of your CTC. Common FBPs are: - Fuel expense - Telephone/internet bill - Food expense (Sodexo, now Pluxee) - Leave travel allowance

Example

If you provide a receipt of your phone bill, internet bill, fuel expenses, etc., you can reduce your taxable income even further.

3. National Pension Scheme

Though not compulsory, your employer can contribute to the NPS. They can contribute up to 10 per cent of your basic pay. This amount is eligible for tax deduction.

Our take

- Increase your basic pay. It will increase the employer’s EPF/NPS contribution. As a result, it will reduce your tax outgo - Check if your employer offers flexi benefit plan.

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