Try GOLD - Free
Optimize deductions, maximize tax saving
Mint Bangalore
|January 13, 2025
How can I optimize tax savings on my ₹10 lakh package with current deductions, including home loan repayments, interest, food coupon, mediclaim premiums, and provident fund?
Should I park ₹50,000 to NPS, add ₹50,000 to home loan interest for a ₹2 lakh exemption, claim exemptions for parents' life insurance premiums, or explore other deductions?
-Name withheld on request
With a ₹10 lakh CTC (cost to company) and current deductions of ₹3,97,400, comprising ₹26,400 for food coupons, ₹21,000 for parents' mediclaim premiums, ₹1.5 lakh for Section 80C, ₹1.5 lakh under home loan interest and standard deductions of ₹50,000, the old tax regime is more beneficial for you. This structure allows you to maximize your deductions and minimize your taxable income effectively.
To further reduce your taxable income, you can contribute an additional ₹50,000 to NPS (Section 80CCD(1B)). This contribution provides a valuable opportunity to lower your taxes and enhance your retirement savings.
This story is from the January 13, 2025 edition of Mint Bangalore.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Mint Bangalore
Mint Bangalore
PVR Inox swings to ₹186 cr net profit
Leading cinema exhibitor PVR Inox on Monday reported a consolidated net profit of ₹186.4 crore for Q4FY26 on a year-on-year (YoY) basis. The company reported a net loss of ₹125.3 crore for the January-March quarter a year ago, according to a regulatory filing.
1 min
May 12, 2026
Mint Bangalore
Radical emission cuts will harm food security across the planet
Reducing the use of fertilizers made from hydrocarbons will reduce farm output and spell hunger
3 mins
May 12, 2026
Mint Bangalore
Revival in FMCG stocks hints at stabilizing consumption
The Nifty FMCG index has risen 6% over a month amid some earnings upgrades
2 mins
May 12, 2026
Mint Bangalore
THE HIGH-STAKES BATTLE FOR INDIA'S ₹74-TRILLION MF PIE
India's burgeoning wealth wave is fuelling a fierce contest between legacy companies and upstarts
8 mins
May 12, 2026
Mint Bangalore
Market volatility tests India's affair with index funds
Investor appetite for passive funds appears to have moderated in April after strong traction in the previous month
1 mins
May 12, 2026
Mint Bangalore
IT cos take austerity measures: Nasscom
Amid the ongoing West Asia crisis, Indian technology companies are adopting prudent management measures, including enabling remote or hybrid work, IT industry body Nasscom said on Monday.
1 min
May 12, 2026
Mint Bangalore
How a job at OpenAI became the greatest lottery ticket of the artificial intelligence boom
Open AI allowed employees to sell up to $30 million worth of shares each in a recent financing, making them some of the earliest financial winners of the artificial-intelligence boom.
3 mins
May 12, 2026
Mint Bangalore
A great code bloat is arising in the minds of managers
The democratization of programming has arrived as an artificial intelligence (AI) model prompt.
3 mins
May 12, 2026
Mint Bangalore
Railways utilized 98% of its budget for FY26: Vaishnaw
The Indian Railways utilized 98% of its budget for FY26, reflecting the pace of execution of projects, and in the days to come, trains will dominate flights on several upcoming corridors across the country, Union minister Ashwini Vaishnaw said on Monday.
1 min
May 12, 2026
Mint Bangalore
India plans mandatory digital database for blood centres across India
The apex drug regulator has directed all licensed blood centres to enrol in a national digital portal, as part of a crackdown after cases of Human Immunodeficiency Virus (HIV) infections in children due to contaminated transfusions across multiple states, according to two government officials and a document reviewed by Mint.
1 mins
May 12, 2026
Listen
Translate
Change font size