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I am a recent graduate and will be starting my job in a couple of days.

My offer Letter says

CTC Offered:

● X LPA (can't disclose the actual amount) -> fixed

and it is written that:

Applicable Income Tax (TDS) will be deducted from your monthly taxable earnings.

So my question is that I have completed my graduation, so I will be paying the EMIs so can I get a rebate on Education Loan from Tax and I also live on rent with my family so can I also get a rebate on that as well?

Also, I am new on this platform, so I am sorry if I missed something.

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    Welcome new user! Seems like a fine question. What is "LPA" ?! – Fattie Oct 9 '20 at 20:59
  • Lakhs Per Annum – Nimish Bansal Oct 10 '20 at 4:15
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    Yes, you will get tax exemption on education loan under section 80E and House Rent Allowance under section 80GG. For these, you need to inform your employer about these expenses to avoid TDS. Or you can claim these back when filling Income Tax Return. – Ajeet Shah Oct 10 '20 at 5:45
  • Can you edit and make the questions precise. You can get rebate... but you are also asking prepayment is better or not.... this needs exact numbers to answer – Dheer Oct 10 '20 at 12:01
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    @CanuteS - believe or not I actually lived there for some years!!! – Fattie Oct 11 '20 at 21:33
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The technical term for it is a "deduction from taxable income" you have to disclose the EMI and rent with proper proofs to you employer and once they enter this into their payroll processing system your TDS amount deducted will reduce to the extent of the deduction allowable under the tax laws applicable for the year.

Most employers have a online system which lets you enter these values when joining and at the beginning of each year so that by the end of the year your TDS deducted is exactly equal to your total income tax due by the end of the financial year.

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