Pay Structure and Tax Liability

newtax.pngDespite being on the job since 1997, I have absolutely no clue of why my salary structure is the way it is, how can it be different, and most importantly, how much is my tax liability and how can I cut it down.

I just received my tax statement from my employer, according to which I have paid about Rs. 27,000 this month. Unfortunately, there is more damage headed my way. Over the next two months, my employer will cut another Rs.70, 000 from my salary in two equitable installments.

On their part, my employers gave me full opportunity to save this money by submitting the requisite receipts, but the mere thought of investments/proofs makes me tremble to the extent that I kept avoiding gathering the necessary documents until the last date of submissions. Of course, one day isn’t sufficient to complete the paper work and hence Im in the state I am.

So if you think, you can help me learn this, feel free to comment. You never know, if you are nice to me, I might even share a bit of what you help me save with you!

3 Comments

  • March 7, 2008 - 2:57 pm | Permalink

    hI Niyaz, thanks for commenting.

    Yes, I am happy because people like you have told me that FM has been very generous in this budget, but like I said before, I can’t make head from foot. I don’t know how to make full use of it.

  • March 6, 2008 - 4:24 pm | Permalink

    You must be happy with the recent tax cut by our FM.

  • Khera
    February 21, 2008 - 1:21 am | Permalink

    .learn something in finance……..to save tax u need to have a good habit.oldies call it SAVING…..which is not possible with u.so let your company deduct tds and pay to govt, might get utilised in some govt projects………what say ????????

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