How to Avoid or Reduce TDS on Salary

Submit all investment proofs for Section 80C deductions

Employers pre-deduct applicable taxes from employee salaries. By investing in tax-deductible instruments, the latter can avoid salary reductions. Agarwal advised taxpayers to submit all authentic documents related to investments made in order to claim a Section 80C tax deduction. These may include, among other things, investment proofs for PPF (Public Provident Fund), NPS (National Pension System), ULIP (Unit-linked Insurance Plans), Sukanya Samriddhi Yojana, Tax Saving FDs, ELSS Equity Funds, and photocopies of school receipts bearing the school's seal. Individuals can also claim a deduction of up to Rs. 1.5 lakh per year under Section 80C for both self-occupied and let-out properties.

Housing loan repayment

The principal on a home loan is deductible under Section 80C of the Income Tax Act. Individuals can claim tax deductions under Section 80C on paid home loan principal up to Rs 1.50 lakh. The maximum claimable amount is Rs 1.5 lakh. To claim this deduction, however, the house must not be sold within 5 years of possession.

Allowance for Leave Travel

Employees can deduct expenses incurred while on leave anywhere in the country. LTA is a component of an employee's total CTC, according to the Income Tax Act.

Public Provident Fund (PPF)

A PPF is a scheme that allows individuals to make small savings and earn returns while also claiming Section 80C deductions. This scheme provides an appealing interest rate, and the interest rate returns are tax-free..

Account Sukanya Samriddhi

Individual contributions to this scheme are deductible under Internal Revenue Code Section 80C. This scheme qualifies for a tax break of up to Rs 1.5 lakh.

Section 80EE benefits for first-time homebuyers

Section 80EE gives first-time homebuyers tax breaks and allows them to deduct mortgage interest. This deduction exceeds the Section 24 limit of Rs 2 lakh. When registering tax repayments, taxpayers can claim a deduction of up to Rs 2,000,000. The taxpayer must be a first-time home buyer and not own any residential property at the time the loan is approved.

Medical Insurance Premium

Individuals can claim a Section 80D deduction of up to Rs 25,000 for medical premiums paid for themselves, dependent children, and spouses and receive tax exemption when filing a tax return.
The National Pension System (NPS) is an excellent investment strategy that is intended to provide financial security after retirement. It must be filed with your income tax returns.

Donations

Individuals can deduct their contributions to political parties. There is no set maximum deduction amount, but individuals can only claim if the donation is not made in cash. Some donations qualify for a tax deduction of 50% or 100%, while others qualify for the same deduction but only up to a maximum of 10% of the taxpayer's adjusted gross deduction total income.
Donations in cash that exceed Rs 2000 must be made with a method other than cash to be eligible for a deduction under section 80G. Section 80GGA allows taxpayers to deduct contributions to scientific research or rural development. This deduction is available to all taxpayers except those who earn (or lose) money from a business or a profession.