Thu. Feb 9th, 2023

My suggestions as follows:

  1. Invest 1.5 lakhs in PPF for savings under Section 80C
  2. If you are planning to work up to age of 60 years, invest up to 10% of your basic in NPS and claim under section 80 CCD. Maximum claim can be upto 50 thousand over and above 80C
  3. Ask your employer to also invest in NPS since you can claim additional deduction subject to 10% of basic max limit
  4. Claim HRA equivalent to least of 50% of basic (metro), HRA paid by company or Actual rent paid — 10% of basic
  5. Claim deduction for interest paid for any home loan. You can claim this if your house is in the name of your parents and you can show transactions showing actual payment to them
  6. Claim dedications for insurance premium payments for self and dependent parents
  7. Since you are already in the 30% bracket, go for equity investments and defer any withdrawals. Even if you were to withdraw, you will be taxed at 10% flat, not at 30%. For debt instruments, withdraw after 3 years since taxation would be at 20% after indexation
  8. Don’t invest in instruments where income from it will be added to your income such as Bank fd, corporate bonds, short term gains fromfixed income products, etc. If you are married and spouse is not working, invest in her name

By admin

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