If one were to pay taxes on an income of Rs 4.8 lakh without any deduction, it would be Rs 49,440 but then by means of exemptions, tax-free perquisites and deductions the net savings was Rs 37,080. Thus Preethi needed to pay a tax of only Rs 12,360.
Now that she has saved a great deal of money by planning her take home salary with our help Preethi was satisfied with the whole exercise as it left her with extra bucks in her pocket. In times when companies are asking employees to take salary cuts such planning is indeed useful to get more bang out of your reduced salary.
It's time you did your tax optimisation too and increased your take home. As they say, 'It's better late than never!'
Also see: 'Opt for floating home loan rates'
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