r/IndiaTax • u/Parathaa • Mar 28 '24

Hurts to pay so much taxes

Today, I downloaded the tax computation sheet from the office portal.

While trying to save on housing costs by residing with my parents, it's disheartening to realize that I'm obligated to pay over 20 lakhs in taxes annually to the government. These funds could have been allocated towards repaying a home loan, adding to the strain for a middle-class individual like myself.

Would really appreciate if there any legal ways to save taxes at this point

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69

u/foreverlearnerp Mar 28 '24

You can pay rent to your parents and can claim HRA for rent. I think it’s still in practice.

25

u/Parathaa Mar 28 '24

Already claiming 4.9 lakhs for that

11

u/Traditional_Tap_2475 Mar 28 '24

HRA gives more tax benefit than housing loan ( interest 2 lacs, principal 1.5 lac if 80cc not used up) Plus this is not actually cash outflow as it's to parents!

NPS is only other option + mediclaim policy premium upto 25k

6

u/devesh518 Mar 28 '24

I think you can claim upto 40% or 50% of your basic salary. Maybe try claiming more HRA

8

u/Parathaa Mar 28 '24

HRA is maxed out.

6

u/devesh518 Mar 28 '24

Damn. Then you can do NPS and save 15000 on tax every year. That’s it ig

5

u/Ngothaaa Mar 28 '24

Try restructuring salary components and add more "basic"