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Tax-free perks, NPS reduce tax by 30%
Nearly everybody thinks that he pays too much tax. But in most cases the taxpayer does not make the best use of the tax benefits available to him. Sudhir Kaushik of Taxspanner tells readers how they can restructure incomes, investments and expenses to optimise their tax.
IT professional Shweta Sinha pays a low tax because her pay structure is quite tax friendly. However, a few tax-free perks (such as newspaper and phone bill reimbursements and food coupons) and investment in NPS can cut it further.