Salary of 22 lakhs, No Income Tax - Income Tax Calculator - FY 2023-24 | FY 2024-25

I'm going to show you a free online tool that helped me save 4 lakhs of Income Tax.
The online tool calculates your Taxable Income, HRA Exemption, Standard Deduction, Surcharge, Rebate, Income Tax, Tax Liability and much more. Also gives you suggestions on how to save maximum tax.

Let's go to the Income Tax Calculator.

Now, let me key in data from my payslip.

As you see, I have a Gross Salary of 22 lakhs

Let's Compute Income Tax

My income tax is processed. I'm supposed to pay income tax of more than 4 lakhs if I choose the new regime. As of now, New regime is beneficial to me.

The Income Tax Calculator lists a lot of exemptions and deductions for me to save tax. I'm going to show you how to use some of these options to bring down my income tax to nil.

Step 1: Declare Contribution to National Pension Scheme

By investing in NPS I can save up to 75000 on Income Tax.
Let me specify the Employee Contribution under Section 80CCD(1B)
and employer contribution under Section 80CCD(2)

I've an option to invest 1.5 lakhs under Section 80CCD(1) but, I'll invest that in Section 80C.

Now, Compute Income Tax

My tax liability has come below 4 Lakhs.

Step 2: Declare House Rent
Now, let me declare my House Rent to claim HRA Exemption. I can save income tax of up to 30% on my house rent.

Let's compute Income Tax

As you see, HRA Exemption brings my income tax close to 3 Lakhs. At this point onwards old regime is beneficial to me.
The Income Tax Calculator also tells me how my HRA exemption is calculated.

Step 3: Declare Medical Insurance Premium
I've medical insurance for my family. This saves income tax of 30000
Now the Income Tax has come below 3 lakhs

Step 4: Declare Home Loan
I've purchased an affordable home this year which saves income tax of 1.5 lakhs. I've to declare this under three different sections
First, let me declare the stamp duty on purchase of the new home and home loan principal under Section 80C.
But, Section 80C already has an investment more than 1 lakh as I'm contributing to the Provident Fund.

Since Section 80C has a limit of 1.5 lakhs, I can claim only 50,000 under Section 80C now.

Section 80C is very popular as it allows deduction on Life Insurance Premium, Mutual Fund Payments, school fees, and so on.

Now, let me declare 2 lakhs of home loan interest under Section 24(b)
The remaining home loan interest is to be declared under Section 80EEA to claim additional benefits on affordable home.

Now the Income Tax has come down to 1.5 lakhs

Step 5: Claim Leave Travel Exemption
Let me claim the air ticket charges for my family trip to Kashmir.
As you see, my income tax has come down to almost 1 lakh

Step 6: Claim deduction on Electric Vehicle
I had purchased an electric car last year, let me declare the interest on car loan for the current financial year.
Now, my income tax has come below 80000

Step 7: Declare donations to approved funds and charities
Now the income tax has come close to 70000

Step 8: Declare interest on education loan
Let me declare interest on education loan for my son's higher education.

Step 9: Declare medical expenses against handicapped dependant
Declaring medical expenses for my dependant's treatment.
Now the income tax is below 29000

Step 10: Declare medical expenses on specified disease
Let me declare medical expenses for my father's cancer treatment

Finally, my income tax has come down to nil.

I've saved Income Tax of more than 4 lakhs with the help of this Income Tax Calculator.

Note that I've received Standard deduction of 50000, and a rebate of 11226.

I recommend you to use this Free Online Income Tax Calculator to save maximum Tax. You may not be able to make all the investments shown in this video, but use the Income Tax Calculator to make a proper investment plan to save maximum tax.

The income tax calculator helps you understand the tax calculation process and also helps you save tax by utilizing the exemptions and deductions allowed by the Income tax Department!

00:00 Salary of 22 lakhs. No Income Tax
00:13 Income Tax Calculator
01:04 Save Income Tax by investing in NPS
01:53 Save Income Tax by claiming HRA Exemption
02:39 Save Income Tax by medical insurance premium
03:19 Save Income Tax by home loan
04:59 Save Income Tax by claiming LTA Exemption
05:25 Claiming deduction on Electric vehicle
05:58 Save income tax by giving to charity
06:26 Save income tax by declaring education loan
06:56 Save income tax by declaring medical expenses against handicapped dependant
07:27 Save income tax by declaring medical expenses on specified disease

#Lenvica #SaveIncomeTax #IncomeTaxCalculator #TaxCalculation #HRAExemption #IncomeTax

[thinkbig]

Thanks for building very good tool to estimate and calculate taxes.

[malar]

Best video. Thank you very much for sharing ☺️

[sanjayarora]

Exceptionally educational! Got enlightened myself about many IT sections that many of us could use. Tried the online IT calculator to check out my liability. It works great!

[anittakantony]

Thanks for making this useful video for all. Really helpful.

[dwanejohn]

This video is extremely informative and helps me and my colleagues plan and understand the major components that are included in tax savings and planning. Thank you! ☺

[zerotoinfinite]

House rent and home loan both at the same time?

[jaisonjoseph]

The tax calculator is extremely helpful. Thank you for the great effort

[vijaypandian]

For all these we need to upload the actual proof in the tax filing right ? As for home loan three categories we may not use all three on the same time and on the father cancer treatment bills to be submitted, pls clarify

[rajuadapa]

Can you sell this Calculator standalone ?

[shibinbiju]

I like the calculator you used in this video. Is it completely free??