Tax
How to pay 0 tax when income is around >= 12 LPA?
Legal? HRA, NPS, Medical Insurance, Donations to genuine NGOs, political parties etc..
Illegal? Donation to political parties with commision involved i.e you don't have to 'really' donate the amount but you need to give some commision to them, then they will provide geniune Donation certificate. You can literally save lakhs of tax if you are in high income group. But this is completely illegal and tax fraud. I came to know of this from colleagues of mine who are doing tax fraud from 10+ years. Apart from this the are numerous illegal ways to avoid tax.
Ok, I am paying tens of lakhs and the legal shit is not helping in any way.
How to do this?????
This is very limited information. There are no details regarding your investment or house loans. Listing below some major avenues which can be used to save tax under old regime for FY 22-23.
1. Sec 80C. Upto 1.5 lakhs (PF deduction, ELSS, term insurance, Lic policies are the major head covered). 2. Sec 80D upto 80k ( medical insurance 25k self and 50k if dependents are senior citizens+5k cash expenses)
3. Sec 80CCD(1B) NPS self contribution upto 50k
4. Sec 80E - deduction upto interest paid on education loan during the FY
5. Sec 24 - upto 2 lakhs on interest paid on home loan
6. NPS contribution by employer - upto 10% of basic salary
Apart from above you can claim LTA and HRA (if the place you are paying rent and place of home for which loan is taken and interest exemption claimed are in 2 different cities) depending upon your company policies.
Above are the commonly claimed exemptions for satisfied class individuals.
One correction - there is no such rule that the city should be different to claim both HRA and tax rebate on house loan interest.
File as business professional so income half, 6 lakhs, take benefit of ELSS 1.5 lakhs = 4.5 non taxable income
What do you mean by file as a business professional? My 5ax gets deducted by the company automatically?
Yes you can’t do that for salaried. Unfortunately you can only save some tax money. You can bring it down to pay around 8% effective with exemptions under old regime
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GareebEngineer
Stealth
a year ago
It's impossible to get tax to 0.
To get even under 50k, you might have to do something illegal like donating to NGO etc , which isn't really worth in my opinion.
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