According to the Finance Minister’s figures, just about a crore Indians pay any direct income tax. India’s Tax-to-GDP ratio has stood firm at 3% since pre-liberalization years. This is why sometimes salaried employees feel like they have to shoulder a high amount of the direct tax distribution.
To assist the salaried class and also to encourage consumption, various tax exemption schemes have come up. Similar tax exemptions have been granted on certain types of bonds. There are also various other expense-based exemptions that the government permits. Many salaried employees likely use these exemptions in one form or another. Here are five of the most popular ways salaried employees can spend and save tax