How can I save my income tax?

How can I save my income tax?

I am a salaried individual and earn almost Rs 200k(Gross) per month. Recently switched to a new company. The SSF scheme is also new to me. My past company had PF, CIT.

I did some basic calculation, and it seems I will be paying more than 30k per month as income tax and almost similar amount as SSF. Unfortunately, my family has huge amount of loans, and I am paying the EMIs. It saddens me to lose so much of my hard-earned money as tax and SSF when I could have used those amounts to pay my loans.
Do I have any option to avoid paying a lot of income tax? I know CIT is one of them, but I have heard they don’t allow CIT if you are enrolled in SSF?
Also is it true that I can’t withdraw my SSF after I leave my current job?

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Nepal123

12 thoughts on “How can I save my income tax?

  1. Basically there are 3 ways as far as I know.
    1. Get termed life insurance. It’s tax deductable.
    2. CIT contribution Upto 3 lakhs per year is tax deductable.
    3. Not sure if SSF contribution is tax deductable
    4. If you are married, you first bracket starts at 6 lakh instead of 5 lakh for single.

    Also yes, SSF contribution cannot be taken out if you have joined recently.

  2. 1. Insurance( i think 50k per year)
    2. they are shitting you. you can add in both CIT and SSF or in private RF. there is limit of like upto 30% of income.
    3. get married

    ssf is tax with extra steps.

  3. You can put money into CIT too. However, it will only be like a saving because it cannot add towards tax deduction because you will exceed the max allowed amount i.e 300K in CIT and 500K in SSF. It won’t be 800K. One way to save tax money is to do life insurance. You can deduct 45K from taxable income that way. Another would be marriage.

    Also, you won’t be allowed to withdraw from SSF fund. It’s for retirement. If you were enrolled into SSF before 078 (I think) then they would have allowed you to withdraw that amount. Another way would be to leave the country :).

  4. buy life and non life insurance , take 50-60 lakh loan and invest that loan to company share or land , which mean you have loan to pay from salary so no tax + you can earn good return from your loan money too . if your company is listed in nepse and can give share as salary ask them to give you 45k rs as cash and remaining in share .

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