Individuals with high incomes (like Rs 15 lakh or above) frequently search for how to pay zero tax upto 15 lakhs. There are several ways for taxpayers to take advantage of deductions and lower their tax liabilities under the Income Tax Act. Some strategies include claiming House Rent Allowance (HRA), utilising the National Pension System (NPS), and so on.
How to Pay Zero Tax on Salary of 15 Lakhs in India?
You must first comprehend your pay structure in order to reduce your taxes. To make things easier to understand, here is a summary:
Taxable Salary Income = Salary minus Exemptions
Net Taxable Income = Taxable Salary Income minus Deductions
This implies that you must figure out how to maximise exemptions and deductions in order to reduce your tax obligations.
Here are the smart ways to reduce your tax liability.
Standard Deduction: Deduct Rs.50,000 automatically from your salary.
Section 80C (Rs.1.5 Lakhs): Invest in tax-saving instruments like Public Provident Fund (PPF), Equity-Linked Savings Schemes (ELSS), or pay life insurance premiums.
You can contribute an additional Rs.50,000 to the National Pension System (NPS) to claim this deduction.
Section 80D: Deduct Rs.25,000 for health insurance premiums for self and family, and Rs.50,000 for parents aged 60 or above.
Home Loan Benefits: Claim a deduction of Rs.2 lakhs on home loan interest under Section 24(b) and include principal repayment under Section 80C.
HRA Exemption: If you live in a rented house, claim HRA exemption as per income tax rules.
Voluntary NPS Contribution: Employer contributions up to 10% of your basic salary to NPS are tax-exempt under Section 80CCD(2). This does not fall under the Rs.1.5 lakh limit of Section 80C.
Besides lowering your tax obligation, tax-saving investments help you accumulate wealth over time. I hope you understand how to pay zero tax upto 15 lakhs.
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How to Pay Zero Tax on Salary of 15 Lakhs?
ravi
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2025-01-23T09:48:06+00:00 2025-01-23T09:48:07+00:00Comment
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