Zero Tax on 15 Lakh salary!

Показать описание

Pay Zero Tax on 15 lakh salary

Explained!

💰CTC: 15 Lakh

Basic Salary: 750,000 (50% of CTC)
EPF: 90,000 (12% of Basic salary)

📍Exemptions Explained:
• HRA (House Rent Allowance):
You may claim the least of the following:
1. Total HRA received from your employer
2. Rent paid less than 10% of basic + DA
3. 40% of salary (Basic + DA) for non-metros and 50% of salary (Basic + DA) for metros

• LTA (Leave Travel Allowance):
LTA is available to salaried employees, restricted to domestic travel expenses incurred during leaves by the employee. One can claim LTA twice in a block of four years

📍Deductions Explained:
 Section 80C, 80CCC and 80CCD(1):
Most used section for savings taxes. No tax on up to 1.5 lakh invested per year. Includes investment on:
• ELSS
• EPF & PPF
• Life insurance premium
• Principal payment on home loans
• Tuition fees for children
• Sukanya Samriddhi Yojna
• NSC & post office time deposits
• NPS
• 5-year FDs

 Section 80D:
Expenditure on Medical and Insurance premium.
• 25,000 for premiums paid for self/family.
• 50,000 for premiums paid for senior parents
• 5,000 for health check-up is also allowed
• 50,000 with respect to medical expenditure incurred towards senior parents

 Section 24:
Interest paid on home loans up to 2 lakhs for interest on home loans for self-occupied property

 Section 80E:
Interest on education loans taken from a bank or a financial institution for pursuing higher studies both in India or abroad by the individual himself or his spouse

📍There are multiple other deductions & exemptions like u/s 80G, 80TTA, 80EEB, or meal coupons, travel allowance, children education to name a few to reduce your tax in case you are in higher income brackets.

Disclaimer: The above content has been made for educational purposes only. Please do your own research or consult a SEBI registered investment adviser before making any financial decision. Past return is not a guarantee for future return.

#moneyvsme #mutualfunds #incometax #tax #savetax #PPF #homeloan #FD #fixeddeposit