The EPF amount contributed by your employer is exempt from tax. Example: If the employer pays Rs 10,000 EPF/month, you can claim tax deduction of Rs 1.2 lakh at year-end
Does your CTC have the following components? - Fuel expenses - Telephone and internet bills - Food expenses (Sodexo) (To be contd)
If your employer contributes to the NPS, you can claim tax deduction. The employer can pay up to 10% of your basic pay to the NPS
Step 1: Get your basic pay as high as possible. Higher EPF/NPS contributions will lessen your tax outgo.
Step 2: Continue with your EPF. Remember, the employer’s contribution offers tax benefits.
Step 3: Start contributing to NPS. Your employer’s contribution has tax benefits. However, employers are not mandated to contribute to the NPS.
Step 4: Ask your office if it offers FBP. If they do, reevaluate them. Check if the allowances are achievable, as you’ll need to provide proof at year-end.