Salaried individuals always look forward to getting the maximum salary to spend after a tough month of work. However, statutory deductions and income tax deductions, EPF contributions, and professional tax from gross salary all affect the net salary, which is also called the take-home salary.

Nataliya/Pexels | Tax deductions reduced the amount of take-home salary

Invest In Tax-Saving Instruments

If the amount of income tax decreases, this may help increase your net salary. You can do this by saving mostly in tax-saving investments. Investment in expenditures, such as school tuition fees, National Pension Scheme, Public Provident Funds, Employee Provident Fund, and so on can help you reduce the tax deductions to some extent.

Pixabay/Pexels | Medical insurance leads to less tax deduction from salary

Pay Medical Insurance Premium And Invest In National Pension Schemes

The amount you pay for medical insurance for self, family, and parents can be claimed as a lesser deduction from the salary. Invest in the National Pension Scheme as the government provides benefits for investing in NPS. Hence, investing in NPS gives you dual benefits in the form of investment returns and tax savings.

Interest On Home Loan

If you have a self-occupied property, the homeowner can claim for a deduction of some amount of money on interest on home loans. On the other hand, if the home loan is taken for a rented house property then the taxpayer can claim a deduction of the entire interest amount.

George/Pexels | Loans for higher education cause lesser tax deduction from salary

Deduction For Education Loan

Loans taken for higher studies can be claimed as a deduction. However, loans should be taken from a financial institution or bank to pursue higher studies. An individual can avail of this benefit if s/he applies for an education loan for self, children, or spouse.

Reimbursement For Books, Mobile, Internet, And Periodicals

Ask your employer to include these expenses as a part of CTC. Also, you can claim tax-free reimbursement by providing bills for internet, mobile, book, and periodicals.

Children Allowances

You can request your employer to provide you with education allowances or their hostel allowance as a part of your salary.

Leave Travel Allowance

The income tax law provides for leave travel allowance exemption for salary employees on domestic travel expenses faced during leaves. One can claim LTA twice in four years.