As a first step towards tax saving, one should identify the areas one can save taxes on without investing. And exemptions and reimbursements can help you save taxes to a large extent; based on Preethi's stack and inputs thereof, we identified that she could claim the following exemptions:
House rent allowance (HRA)
She could claim Rs 2,500 per month and her office did not require her to provide any proof up to Rs 3,000 of rental payments. She needed only a self-declaration. The HRA benefit was allowed as a minimum of following 3 conditions as computed in the table:
Conveyance allowance: One could claim Rs 800 per month as this would not require any proof.
Medical allowance: One could claim Rs 15,000 per annum; here one has to produce medical bills of self or dependant.
Also see: Young Couples: Financial gyaan in tough times
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