{"id":161,"date":"2022-01-25T08:58:00","date_gmt":"2022-01-25T08:58:00","guid":{"rendered":"https:\/\/akhilamitassociates.com\/blog\/?p=161"},"modified":"2023-11-17T08:59:06","modified_gmt":"2023-11-17T08:59:06","slug":"zero-tax-on-salary-of-rs-1000000-is-it-possible","status":"publish","type":"post","link":"https:\/\/akhilamitassociates.com\/blog\/zero-tax-on-salary-of-rs-1000000-is-it-possible\/","title":{"rendered":"Zero Tax on Salary of Rs. 10,00,000? Is it possible?"},"content":{"rendered":"\n

Zero Tax on Salary of Rs. 10,00,000? Is it possible?<\/strong><\/h2>\n\n\n\n

Yes, even if your salary is up to Rs. 10,50,000, you will not be required to pay the taxes after reading this article.<\/h2>\n\n\n\n

1. Standard Deduction<\/h3>\n\n\n\n

\u2981 Assumption \u2013 Salary Considered \u2013 Rs. 10,50,000. If even if it is less, you can still save the taxes to zero and yes, you heard it right \u2013 Legally, without having the sleepless nights of getting notices from the Income Tax Department.<\/p>\n\n\n\n

\u2981 the government provides the Standard Deduction of Rs. 50,000. So your taxable salary is Rs. 10,50,000 \u2013 50,000 = Rs. 10,00,000.<\/p>\n\n\n\n

2. Deduction under Section 80C. Confused about what comes under 80C \u2013 Read Below \u2013<\/h3>\n\n\n\n

\u2981 PPF, EPF, LIC premium, Equity-linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for the purchase of property, Sukanya Samriddhi Yojana (SSY), National saving certificate (NSC), Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds, etc.<\/p>\n\n\n\n

\u2981 The maximum deduction which can be claimed here is Rs. 1,50,000. Hence, considering you invest Rs. 1,50,000, your taxable salary becomes \u2013 Rs. 10,00,000 \u2013 Rs. 1,50,000 = Rs. 8,50,000 (taxable salary).<\/p>\n\n\n\n

3. Deduction under Section 80CCD (1b) \u2013 National Pension Scheme \u2013<\/h3>\n\n\n\n

\u2981 You can claim a deduction of Rs. 50,000 by investing under NPS. Yes, it has restrictions for the withdrawal, but this will help you in building a retirement corpus.<\/p>\n\n\n\n

\u2981 The taxable salary after investing here will become \u2013 Rs. 8,50,000 \u2013 Rs. 50,000 = Rs. 8,00,000.<\/p>\n\n\n\n

4. Deduction Under Section 80D \u2013 Medical Insurance \u2013<\/h3>\n\n\n\n

\u2981 Indians, yes you heard it right we Indians have started giving importance to Insurance policies and yes now we don\u2019t ask \u201d Wapas Kitna Milega Kuch Nahi Hua To\u201d \u2013 With this change in mindset and living in a pollutive environment we require medical insurance. \u201cSone pe Suhaga\u201d is it will even save your taxes.<\/p>\n\n\n\n