How HRA and NPS can cut tax out by Rs 1.5 lakh

Bengaluru-based media professional Shefali Sahay earns well, but almost a fifth of her salary goes in tax because she doesnt claim all the deductions available to her..

Taxspanner estimates that Sahay can reduce her tax by more than Rs.1.5 lakh if she opts for the NPS benefit offered by her company, invests in the scheme on her own as well, and claims HRA exemption by paying rent to her mother..

She also needs to buy health insurance for herself..

If her company puts Rs.6,375 (10% of her basic pay) in the NPS every month, her annual tax will reduce by Rs.24,000..

At 43, she should opt for a balanced allocation in the NPS.. . Next, she should pay rent to her retired mother and claim exemption for HRA..

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