Hello All,

I am paying a tax of 77k to 80k per month for a fixed salary of 40 lakhs per year. Total CTC is 42 lakhs. Can someone tell me if I am paying too much tax? Please note that I am using the old regime for tax declaration. Also, my PF contribution covers 80C.

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I have a CTC of 45lakhs, and end up paying about 7.5 lakhs as Taxes. I opted for 10% deduction, from my salary to NPS through my employer and another 50k voluntary contribution to NPS. HRA, and 80D deductions for my parents insurance policy who are senior citizens and finally 80G deductions for the donations I make probably reduce the tax burden a little. But yeah unlike Businessmen as a salaried employee there's not much we can do.
On a lighter note: Last year I asked a CA friend what else can I do, and he joked "bhai agar ye sab karne k baad aur kum tax dena hai toh salary kum karwa le". 😊

likefunnyuplifting

1) pls invest in the GOI National pension system to save tax of 50000 over and above your 1.5 lakhs ( this comes under sec 80CCD (1B)

2)Also check if your employer has a Corporate NPS account. ( national pension system) If they do, your contribution upto 10% of your Basic+DA will be towards your own retirement..( this would be deducted from your salary monthy) You would get additional tax benefit under ( Sec 80CCD 2)

Trust this helps

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Agree on this suggesstion for NPS. Like in HCL we also have corporate NPS account atleast some tax will get reduced

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Once you reach the 30% slab, we start paying a lot as tax. For your CTC, I guess the tax seems to be correct. Once your CTC crosses 50LPA, the tax will increase a lot more.

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Thanks for the response and the confirmation on taxation. The thing is even with loan on a flat, taxes will Increase because I will lose out on HRA, which is a good amount. Really distressing to lose out so much on taxes.

Ok. My parents aren't in the same city.

Yoe?

Opting New regime is more beneficial if you're CTC is high

No it isnt. Depends how much deductions you can avail. On a CTC of 45lakhs I end up paying 92k more tax with new regime.

Thanks everyone for the comments. Will definitely look in to NPS and corporate NPS account.

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