Amu_Ke_Fundye Taxes for Salaried Individuals As soon as the filing season begins, the salaried class is in a frenzy about taxes they must shell out for the said financial year. It is important to understand your tax slab and what each of your salary breakup component means. This can help you figure out how to save on taxes. If you want to understand your salary components or want to learn how you can save tax on your salary income, this guide is for you SECTION I – Understanding Your Payslip 1. Basic Salary This is a fixed component in your paycheck and forms the basis of other portions of your salary, hence the name. For instance, HRA is defined as a percentage (as per the company’s discretion) of this basic salary. Your PF is deducted at 12% of your basic salary. It is usually a large portion of your total salary. 2. House Rent Allowance Salaried individuals, who live in a rented house/apartment, can claim house rent allowance or HRA to lower tax out