Income Tax Calculator: About a month is left and the new financial year will start from 1 April. Along with this, your annual income up to Rs 12 lakh will also become tax free. After applying the standard deduction of Rs 75 thousand, this figure becomes Rs 12.75 lakh. But what if he earns more than this i.e. Rs 17 lakh?
It is possible that if someone asks you about this, the first thing you will say is that he has to pay tax. But it is not like that, maybe it may seem like a joke to you at first but it is true. Let us explain some calculations for this.
The government has made income up to Rs 12 lakh tax free under the new tax regime. Under this, you do not even get the exemption available under section 80C. According to ET’s report, despite this, you can make income up to Rs 17 lakh tax free under the new tax regime. Let’s know how?
The total salary paid by companies to their employees is called CTC (Cost to Company). Some part of it is for commuting expenses. According to tax advisor firm Bhuta Shah & Co, if you choose the new tax regime, then you will not have to pay tax on this part of your salary. But, you can avail this exemption only if this expense is incurred for commuting for your office work.
According to Bhuta Shah & Company, in some companies, special employees are given a fixed amount for their travelling expenses, which is called transport allowance. This allowance is usually up to Rs 3,200 per month. That means Rs 38,400 is given annually under this. It is worth noting that this facility is available only to those employees who are physically handicapped.
Salaried employees can get tax rebate on their telephone bill expenses. According to Yogesh Kale, executive director of tax advisor firm Nangia Andersen LLP, tax exemption can be availed on telephone and internet bills in both the new and old tax regimes. There is no limit on exemption on telephone and internet bills in both the regimes.
Car lease is an agreement in which you use the car for a fixed period, for which you make monthly payments. At the end of the lease period, you can return the car or buy it. Under the car lease policy, cars are provided for personal and official use. In this, you get a tax exemption of Rs 1800 per month on a car with a 1.6 liter engine.
By combining all these methods, you can avail the benefit of zero income tax under the new tax regime on salary income up to Rs 17 lakh.
The post Income Tax: You will not have to pay even a single rupee of income tax up to 17 lakhs, not 12 lakhs, know the method from the experts first appeared on informalnewz.
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