How NPS, tax-free perks can reduce your tax outgo by Rs 1 lakh

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Hyderabad-based technical writer Vipin Kukreja earns well, but a big chunk of his salary goes in tax..

TaxSpanner estimates that Kukreja can reduce his tax outgo by more than Rs.1 lakh if his company offers him the NPS benefit and he gets some tax-free perks..

Under Sec 80CCD(2), up to 10% of basic salary put in the NPS is tax-deductible, but Kukreja is not sure because he joined the company only recently. ..

If his company puts Rs.15,417 (10% of his basic pay) in the NPS every month, Kukrejas annual tax will reduce by nearly Rs.58,000..

If Kukreja buys items (computers, furniture, AC) worth Rs.1.2 lakh in a year, his tax will be reduced by almost Rs.34,000..

Full story at Economic Times | 

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