How to pay zero tax and get tax free income for over ₹ 10 Lakhs?

How to pay zero tax and get tax free income for over ₹ 10 LakhsHow to pay zero tax and get tax free income for over ₹ 10 Lakhs?


Last week I wrote article about how one can save income tax upto ₹ 4.44 Lakhs of his income and there was very good response from readers. I fall under 30% tax bracket. I was wondering whether I can save income tax of over ₹ 10 Lakhs income. I was analyzing various avenues to save income tax and felt there was scope to save income tax for over ₹ 10 Lakhs income. What are the various ways where we can get tax free income of over ₹ 10 Lakhs ? How to pay zero tax for over ₹ 10 Lakhs income? I found some answers and some may be useful for you. Read on….

How to pay zero tax and get tax free income for over ₹ 10 Lakhs?


Well, whatever I am indicating is a legal way to get tax free income for income over ₹ 10 Lakhs income. You may or may not implement all these options as there are some dependencies on your employer too, but you can try and get maximum tax exemptions and earn tax free income and pay almost zero tax upto ₹ 10 Lakhs income.

Also Read: What are the various tax saving investment options available in India?

# 0 – Your basic income tax exemption – ₹ 250,000


I would not discuss much about this as it is basic exemption.

# 1 – Claim 80C Exemption for ₹ 150,000


Following are the eligible deductions u/s 80C.

  • Children tuition fees. No transport allowance / term fees is allowed as deduction.
  • Amount deposited in Public Provident Fund. You can open PPF account with any post office / SBI / ICICI Bank etc.,
  • Amount contributed towards the Employees Provident Fund (EPF)
  • Post office term deposit for 5 years / Bank FD scheme of 5 years.
  • National Saving Certifications (NSC) – 5 years and 10 years
  • ELSS tax saving Mutual Funds.
  • Senior Citizen Savings Scheme from post office / bank
  • Principal repayment of Home Loan amount
  • National Pension System / New Pension Scheme (NPS)
  • Life Insurance Premium
  • Amount deposited in Sukanya Samriddhi Account

2) Claim additional deductions under 80CCD towards NPS ₹ 50,000


Employees can contribute to New Pension Scheme / National Pension Scheme (NPS) up to 10% of their salary. In such case, an employee is eligible to claim additional ₹ 50,000 tax benefits over and above 80C. Hence max limit 80C + 80D would be ₹ 2 Lakhs.

Also Read: How your parents would be able to save income tax for you?

3) Employer contribution of NPS – ₹ 100,000


Many employers are willing to help employees by contributing to schemes like NPS where employees would get tax exemption. Have you checked with your employer whether they can contribute to NPS and deduct from your total CTC (Cost to the company)? They can contribute up to 10% of your salary. This is a good way to claim tax exemption and get the highest interest rate with this safe investment scheme.

4) Claim interest on house property loan upto ₹ 200,000


If you have taken house loan, you are eligible to claim interest on home loan (which is termed as loss from house property) up to ₹ 2 Lakhs. This is only interest from housing loan. You  can fulfill your dream as well as get income tax exemption.

5) Exemption of Transport Allowance for ₹ 19,200 per annum


From next financial year 2015-16, the transport allowance exemption has been increased to ₹ 1,600 per month / ₹ 19,200 per annum. You need not produce any proofs for this, but just claim as an exemption.

6) Exemption for Health insurance premium up to ₹ 25,000


You can subscribe to a good health insurance plan and claim health insurance premium exemption up to ₹ 25,000 per annum. This would satisfy your basic need of having a health insurance plan and also ensures that you claim relevant tax benefits.

7) Medical allowance – ₹ 15,000


You can submit medical bills to your employer and claim upto ₹ 15,000 as medical allowance as part of your total compensation (CTC). In case your employer does not allow for this deduction, you can claim this amount as exemption while filing income tax returns and claim as exemption.

8) Medical insurance premium for parents – ₹ 30,000


You can claim the medical insurance premium for your parents as exemption upto ₹ 30,000. Due to increase of the cost of medical expenses, one has to mandatorily buy a good health insurance for their parents. There is no choice, but you can claim this as an exemption from your total taxable income.

9) Leave Travel Allowance – ₹ 25,000


Many of us tend to ignore this LTA (Leave Travel Allowance) which one can spend and claim exemption up to ₹ 25,000. While there is a guideline that you can claim LTA twice in a period of 4 years, you can claim upto ₹ 50,000 as one time in a 2 year period, hence an allocation of ₹ 25,000 per annum is done here. Note that this amount would depend on the employer and may change from employer to employer.

You may also like: How working couples can save income tax in smart way?

Tax Free Allowances / perquisites


Below are some of the tax free allowances / perquisites which employers are providing these days. They would depend on an employer to employer. You can claim to maximum extend to enjoy tax benefits.

10) Fuel expenses reimbursement upto ₹ 100,000


Many employers provide fuel expense reimbursement for their employees depending on their grade. While at junior level, it may be  at ₹ 30,000, for employees who are earning above ₹ 10 Lakhs per annum, employers are providing ₹ 1 Lakh fuel expenses at a minimum. I have not considered any car schemes here, and this is simply fuel expense reimbursement which could be based on actual.

11) Phone / Mobile expenses reimbursement – ₹ 30,000


Many employers provide reimbursement of phone and mobile bills to the tune of ₹ 30,00 per annum as part of the CTC structure. I heard in some companies, it is over ₹ 50,000 per annum. I have considered ₹ 30,000 on the conservative side.

12) Newspaper / Magazine reimbursements – ₹ 14,000


Many employers are giving reimbursements of newspaper / magazine to the extent of ₹ 14,000 per annum for senior employees earning over ₹ 10 Lakhs per annum. Some companies are restricting only to magazine cost reimbursement. One can claim this as part of their CTC. I have taken this average after inquiring with some of my friends who are working in MNC and large companies.

Also Read: Top and Best Tax Saving ELSS Mutual funds to invest in 2016

13)  Meal Coupons / Sodexo coupons – ₹ 12,000


Many MNC companies are providing Sodexo coupons as part of their CTC structure. If you are not encashing such perquisites provided by your employers, you are missing something and paying unnecessary taxes. I have taken this amount on the low side as some are providing this as just ₹ 1,000 per month, but some MNC companies are providing ₹ 3,000 per month.

Pay zero tax for over 10L income

Also Read: A to Z of Income tax Provisions in India to save income tax

Conclusion: I am not saying that these are provided by all employers. But to the maximum extent, many Multi National Companies / IT companies / Large companies are providing them. One should encash them and see how they can pay zero tax and get tax free income for over ₹ 10 Lakhs income.

Readers, I would love you hear from you about paying zero tax for over ₹ 10 Lakhs income. Are you trying these options. Does your employer provide these facilities to you? If yes, comment with some more details.

If you like this article, please share this on your Facebook or Twitter. This would be a special gift which you would be giving to our blog.

Suresh
How to pay zero tax and get tax free income for over ₹ 10 Lakhs?

Suresh KP

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179 comments

  1. Hi…can you write about how a freelancer can save his tax if he is earning between 10 lacs per annum. I had searched everywhere but I don't get anything on website

  2. Thank you so much, You helped me literally 🙂

    I am searching for different pages for Tax Savings for my salary of 1100000, This is Worth 🙂

  3. Really usefull , when i studied studied in books for exam purpose i didnt understood that much , now i understood practically how we can save on payment of tax.

  4. Thanks Suresh,

    Really beneficial, nicely explain in short. 

    There are some of the points which collides, like we can claim only fuel or transport allowances. And sometimes we don't go for bigger insurance or health plans, and everyone can not go for home loans etc.

    But overall thanks for article which can save our heard earnd money.

    And want to hear more from you on some other points in mutual funds or infrastructure bonds and schemes etc.

     

  5. If LTA is exempted from tax in govt sector if any govt servant claim one time LTA in a period of 4 year block as basic pay +DA

  6. All these allowances that are being mentioned in your example are fully taxable allowances even govt co doesn’t follow this. ?

  7. sir…i am busineman i had my own business..i wnt to show my income abt 12lakhs at present ..i am showing around 4 lakhs .. any process to save tax…and my income increased

  8. Hi Sir,
    Request you to please suggest me for the Investment to saving the tax from my salary.As i received salary More than 12,00,000/-

  9. Dear Sir,

    Request you to help me for the saving the tax from my client salary.As he has more than 12,00,000t package.

    As he asked me to for the same, But I am unable to told him for the all details for the same.As pursuing ICWAI (Final) want to the all the details for saving the tax.

  10. hi, Anupam
    u can fill your itr online even if u r not provided with form16 by your employer.You are requested to insist to obtain form 16 from your employer, if not provided then you can use option of 26AS(annual tax statment) under section 203AA of income tax act,1961,which while provide u with the information regarding your tax deducted from source by employer & tax deposited the same with govt.
    for online return prepare and submit just log on to incometaxindia.gov.in
    register yourself with the PAN & other required information & u can pay the net tax liability online.
    since there is no salary structure regarding detailed breakups of salary u just show this 900000 under head salary and get the deductions against the under chapter VIA. u can get the deduction of 12% for provident fund of your salary maximum(12%*900000=108000)+travelling allowance 19200+HRA as per details provided,medical insurance,LIC premium etc

  11. I worked for a small organization. They paying me 9.0 lac per yr @ 75000/- month .no salary structure was there. They are not providing me form 16.what would be the correct approach to file my itr and what would be the correct way to pay zero tax. One more thing with out itr bank will not provide me property loan. Pls guide me.

  12. Hi Suresh,

    I have withdrawn EPF from last employer. Amount is credited after deduction of TDS. I have received Form 16A for the same and it is reflected in From 26AS. Now, my question is while filing income tax return for the current year (AY 2016-17) should I mention PF amount in my taxable income?
    If I do so there is outstanding tax payable,because of this my slab rate has been changed, but if employer already deduct the TDS then why I should pay further more tax?

    Please suggest!
    Thanks

  13. I am self employed person ,and since from last two years i am paying zero tax but this year 2016 ,2017 i am willing to file itr of 1000000 as my income.i have a big resposiblity towards my family of 8/members,education and livings.can you please suggest how can save some income tax, as i do not have any investment for future.but i am plaaning to do from this year.but this fiscal year i want to save some taxes ,how ? Suggest me or guide me
    Thanks

  14. Hi Suresh,
    The article is really nice!! I loved it and I am inspired by it.
    Could you please let me know what was your monthly earning when you started your journey in 2010?
    How much you used to spend for daily wages and how much you used to invest towards your goal..

    If you wish, you can choose to send me an e-mail to my e-mail ID.

  15. Hi ,

    I got 25000 of LTA for the year 2015-16, in the month of may-16, can I required to submitted travling billg etc fot this year2106-17 IT returns or not required, plz suggest.

      1. Sir,

        My company has added Rs. 1 lakh as fuel reimbursement to my slasry. Wanted to know under which section I can claim the exemption

        Deepak

        1. Deepak, You need to simply claim from your company and they would add it in appropriate sections. You need not worry about it. It is the company offered perquisite.

  16. I have had a recent hike in my yearly CTC which is now 12 lacs for 2016. And in-spite of showing all possible savings I have declared as of now I am still getting a taxbale income of 1lac which is alomost 8k per month deduction.
    Pls can you help me how can I come to zero tax pls?
    My deduction considered were 1.5 lacs under 80 C (LIC, PF, PPF, FD)
    And Reimbursement of 1.04 lacs of fuel, phone and meal cupoun and allowance of HRA, Professional Tax and medical of 17,400 in total.
    Pls suggest?

  17. hello sir i got 18 lakhs of income from land by government acquisition for damp bank deducted 2laks of tax please suggest how to save and file return

  18. It was a good info..I have a situation where my employer doesnt provide any tax exempted allowances such as LTA,Conveyance, Food , Mobile reimbursements etc.. So, I dont know how to save my taxes. Please let me know if there are any other options

  19. Nice article,

    But regarding the Interest on Home Loan, I thought it can be claimed only for your first home loan and that too only for the first FY in which the loan was allotted. Or can we claim every year on Home loan interest?

    1. Interest on home loan can be claimed every year upto Rs 2 Lakhs for self occupied property. Principal amount can be claimed u/s 80C, but max amount under this is Rs 1.5 Lakhs.

  20. Theoretically it looks fine but surviving in a metro city with family on Rs 250000 annual income is just a dream
    But Well written and explained

  21. Dear Sir,
    Under which section we can claim this conveyance LTA,medical etc. or can we directly deduct from our total salaries.

    1. It depends on what govt is offering as part of your salary structure Shitiz. Pls check your salary structure, any applicable cases, you can claim

  22. It should be in the name of the employee as the employee needs to submit the bill for his/her tax relaxation

  23. Dear Bhadresh..
    1. Investment in 80 CCD si loss of 40% Capital as per your interpretation which would be correct if you will not receive annual pension. But since you will be receiving monthly pension from the 40% of corpus, it is not loosing of capital
    2. Premium of health insurance is not investment.. Yes you are correct but please check with any family which have gone through a critical medical condition and then you will realize how much money he has to spend on treatment. You will know how important it is and the values of health insurance.
    3. Home Loan Interest of 200000.. Since you are paying interest of 2,00,000 that means you have taken a loan of approximately 20,00,000 which means you are not using your own money for buying home and investing your own money elsewhere and at the same time getting interest/profit from your own money. Thus indirectly you are saving 40,000 (20%) and not spending 1,60,000 as you will get this money from your own money invested instead of using your money to buy house.

  24. Hi Suresh,
    You told that income above 500000 means before deductions or after deductions for IT returns.
    Please confirm.

  25. PLEASE NOTE THAT INVESTMENT MADE IN 80CCD AND 80CCD(2) 40% OF CORPUS YOU WILL NOT GET BACK AT ALL. i.e. LOOSING OF CAPITAL TO THE EXTENT OF 40%.i.e. Rs 60000( 40% of 50000 & 100000)
    FURTHER premium of health insurance Rs. 50,000 is not INVESTMENT
    FURTHER HOME LOAN interest is not Investment. it Spending of Rs 200000 and saving of Rs 40000( 20% Tax bracket. i.e. you are losing 160000
    so as e above 2,20,000 is not worth/ or tax planning on SPENDING of Rs 3,50,000/-. Better you pay Tax of Rs 70,000/- on Rs 3,50,000/-

  26. I am a 63 year old lady retired from govt. service I am getting my own pension and a family pension after death of my husband. If I take sum of both the amount is taxable. I just want to know IS THE FAMILY PENSION TAXABLE OR NOT.

  27. Hi,

    Can you confirm can Transport allowance and Fuel reimbursement (car) both can be claimed.
    As per your analysis it says yes. But I need some concrete supporting because as per my info both cannot be allowed.

  28. is it necessary that the mobile bill is in name of employers to claim allowance or is it ok to be in name of employee.

  29. I am govt servant
    I have claimed Rs 5556 towards books and uniforms charges but our accounts dept added this amt in my gross salary and told to pay the tax on it.
    No tution fees paid as it is free
    If I have to pay the tax then what is the point in claiming this amt
    Please advise
    Thanks

  30. Hi sir I am working in bank and my total salary comes around 3.5 lacks. I am bacholor and I paying emi towards my education loan. And I got interest utilisation certificate for rs 13000-/-. And I don’t have any purther investments. So guide me to get exemption from tax.

  31. can u pls specify the sections of IT Act which says tht the reimbursement of fuel, mobile and newspaper and contribution to NPS by employer are exempted from tax. As per my knowledge reimbursements are exempted only if its used for official purpose

  32. Kindly provide information on my query: If I gift Rs. 50,000 to my wife, would the amount be considered for tax exemption? If yes, can the gift be given once a lifetime OR can it be provided on annual basis?

    1. You can give any nos of gift to your wife as she falls under the term “relative”. You cannot claim this as exemption. However your wife need not show this as income.

  33. This transport allowance fall under which 80cc or some other, my company dont provide transport allowance its not mention in cts still can i got head and claim tax benfit and… Health insurance allready in 80c right as what is special under which section it falls

  34. You cannot claim both Transport allowance of 19200 and fuel expenses…Either of them can be claimed and the latter needs actual bills

  35. How to save tax for perquisites.. as perquisites are added to the taxable income. Thus increasing the tax overall

  36. Kindly tell me that under what head the LTA, Medical bills, Mobile bill shall be put for exemption while filling returns?

    1. The LTA that one can claim will be mentioned in your CTC. Also, kindly note that taxi bills are not considered for LTA.

  37. What is the maximum exemption which we can claim against LTA in the block of 4 years? You generally indicated Rs. 50,000 ( 2 LTA in a block of 4 years. i.e. 25000 per leave travel). This looks too small an amount considering the cost of travel for husband, wife and 2 unmarried daughters.
    That too if we have nade travel, with authentic reciepts of tickets, what is the maximum limit spend?

  38. One more point that I would like to mention that the investment made in NPS scheme will be taxed on maturity. It falls under EET category of investments as per taxation.

  39. This is good article. However, I have some points to mention:
    1. Is the amount of Rs. 1,00,000 contributed by employer towards NPS scheme above and over Rs. 1,50,000 deduction under Section 80C and Rs. 50,000 deduction under section 80 CCD? Kindly do let me know as I am not aware of this deduction.

    2. For medical allowance of Rs. 15,000 one needs to provide doctor consulting fees/mobile bills, etc to claim the reimbursement. For people with an average age of around 30, it will be difficult to have medical expenses around Rs. 15,000

    3. Again for an average age of around 30 years, medical insurance premium will not be around Rs. 20,000. It will be lot less even for a good coverage of around 3-4 lakhs/annumm. So again it is difficult to claim the full amount.

    4. In order to claim LTA, one needs to furnish actual travel bills. Even for travel bills there are many riders. One needs to avail leave of minimum 4 days. One cannot claim if he/she is not part of travel group. One can only claim train fares or air charges. No local transportation charges can be claimed (which can be substantial). One cannot claim for accommodation and food (again substantial costs). Hence, again to claim full amount if difficult.

    5. A person not having his own house, can claim House rent allowance (HRA) as per his CTC and his location (metro & non-metro city). This is important because many working persons in metro cities live in rented premises.

    6. Another interesting point regarding HRA is that if one owns a property on loan in different city than where he lives, the person can claim both HRA and housing loan deductions.

    The information is to highlight the real life scenario.

  40. Have you worked out the cash flow of the suggestion? How much will be the take home pay? Whether any one can get both transport allowance and fuel reimbursement?

  41. Indeed,Very Good Information. Many people will be in confusion on how to save tax and with different sections available in India. Here it is clearly mentioned all the eligible exemption in each sections. But if you try to save this much tax, then it will be difficult to survive for a whole month with takehome, because already almost 60-65% of salary is invested in different ways.

    Anyways thanks much for your elobrate information.

  42. 80c and Home load interest do not get separate exemptions. Homeloan principle amt + 80c/interest/ppf = 200,000 + 150,000 Only

  43. Regarding newspaper/magazine deductions, the amount will be tax free if the materials are related to your profession only. Regular morning newspaper or magazines or other story books or novels are not included.

    1. Yes you can. Your direct contribution to NPS will be tax exempt under Sec 80CCD(1) upto 1.5 lakh (mind you this limit of 1.5L is shared with Sec 80C too). Over and above this 1.5 lakh, you can get tax exemption of up to 50K under Sec 80CCD(1B). Additionally, your employer contribution to NPS is tax exempt up to 10% of your basic salary under Sec 80CCD(2). Hope this helps.

  44. When it comes telephone and fuel reimbursements, these actual based and not a fixed sum every month.

    You have to submit itemized bill to claim telephone expenses and also justify that you travelled on co. Behalf or co. Purpose to claim fuel reimbursement.

    Plz research a bit more.

  45. I think the guy has done a good job of explaining exemptions….i did not know about tuition fee of my kid as exempt….nobody said you get a home loan to save tax…the article says home loan principal and interest amount can be claimed for exemption….which i hope all people with home loans do

  46. Guys Mr. Suresh have shown the options that are available. Its up to you, whether you follow it or not. Moreover there two kind of people, one as you rightly said for a long term purpose why should i loose current disposal of my money. two even though if i dont have instant money later i can enjoy. So it’s up to you which one you choose. There is nothing wrong/right. Its a matter of your choice. Thanks to suresh for exploring the available options.

    Regards.

    Kishore Tholana.

    1. Shailesh, I am talking about deduction from salary or income. If you invest, then only tax free bonds would come into picture. You can refer tax free investments article for that

  47. taking tax saving options for the sake of saving tax means you are burning extra 70% money to save 30% money. Take any of the above like home loan , NPS savings, only if you are happy with the return or as long term investment, but not to save tax.
    Also, you are telling many companies give benefits like fuel reimburse, paper reimburse etc, Don’t generalize. I have seen atleast 70% of companies don’t .

  48. There are a lot of items here which are completely illegal, to say the least!! Fuel, Telephone, Newspapers/Magazines…?? Please DO NOT mis-guide the tax paying public. Go and check the Rules and the Act.

    Besides some of the investment options are very unattractive and not recommended.

    Do not resort to sensationalism by claiming Rs. 10 Lacs of tax exemption availability. It is misleading and inaccurate.

    1. Manek, As indicated in my first paragraph, some of these are provided by employer in most of the MNC companies. If any of them are not applicable to you, you can strike it off and consider which are relevant to you. Except for last few line items, all are legally valid ones. You can refer such articles in ET or any other blogs.

  49. If i do all these the sure thing is tax payable will be ‘zero’ but what i will have in my hand also zero… looking forward to future is good looking only forward to future and not enjoying the present is not good… BUT i do agree on all these tax excemption plan this will help some people even for me 2 of them would be more applicable…. Thanks for sharing this buddy…..

  50. your take home goes so bad when you do all these. Also you will end of spending more money to insurance premiums and on interest to house loans which you might not need. Saving 50000 from tax and spending it on something not needed is also a bad idea 🙂

  51. This doesn’t make sense to me. Why should someone block their money under 80CCD and NPS and why should someone pay more interest on home loan to get it tax exempt. Anyways, I would pay my taxes and prefer to have money at my disposal.

  52. This is only when employer offers. But, most employers won’t offer everything that are mentioned above… And if you put everything in above mentioned investments.. your tax will come to 0, but you will end-up in investing, so your take-home will remain as earlier (or even less).

  53. Fuel expense of 1 lakh is nonsense. No section provides for such exemption. Fuel expense is exempt only if it is for official purpose. Which has to be proved with documentation. There is no exemption for newspaper n magnizine also.

  54. Sir, I am a Maharashtra state government employee recently our department started deducting DCPS from our salary in 2 installments i.e DCPS current month contribution and DCPS delayed(previous recovery)
    Can we clame additional benefit of 50k under 80CCD?

  55. So it depends on employer ?? I thought these provisions are from govt.
    I can use many of these and I am not sure why then either internal tax declaration or the ITR forms dont have fields to put these figures in ?? It would be the best ever article on tax if you could also guide us where to fill these in ITR forms ??
    Eagerly waiting your reply.
    RGDS

    Sandeep Bodkhe
    Sandeepbodkhe@Gmail.com

  56. Both Fuel expenses and transport allowance cannot be claimed together, needs correction. Please check the limits for mobile reimbursements. I work for an MNC, who are very knowledgeable about all deductions, and keep fully aligned with the max allowable limits.

  57. Its easier said than done. You cannot have all the above deduction all at once. There will be some of them which wont be available for exemption. But still its a nice idea of lowering the taxable income to a greater extent if not completely zero.

  58. if i am not wrong according to your calculation available income of the person for the other household exp is Rs. 250000/-

    Can a person meet his all exp in this income?

    1. Kumar, These are legally available.  Some of them are provided by your employer directly and it is not in your hands. None of them are mis-leading, I am ready for a challenge.

  59. Some.of these are not possible or you I’ll not be eligible…eg if you pay the 200k as interest then imagine the monthly emi one has to pay….loan will not be approved….not at all practical

  60. 1. This is like awesome… And in the process I either invest and expend say 70% of my income and left with only 30% of it, which I think will be much less than what is twitter to maintain my lifestyle when I know I earn more than 10Lakh.

    2. Don’t say you are saving tax for people with 10Lakh income, say you are doing it for salaried people.

    Thank you for the information though. It certainly will be useful for those who are earning way more than 10Lakh. They will definitely be able to save some taxes in the process. Appreciate.

  61. Is it possible to get tax exemption for liver transplantation surgery for my child .cost of procedure 25 Lakhs.

  62. It’s just hypothetical example. All benefits can’t be taken at once as there is no money left for day to day expentiture.

  63. But if I invest around 850000 out of my 1000000 salary.. I will have very less amount for my other monthly expenses.

  64. Internet broadband connection is also offered tax free upto Rs 12000 per year (Rs 1000 per month) by some employers.

  65. Bingo, Investment ideas are good but that should be considered by anyone only after comparing the Salary that they take home.

  66. Missing house rent allowance upto 40% or 50% is tax exempt depending city you are staying I.e non-metro or metro but limited by excess of 10% above ur ctc.

  67. Hai Nilesh,

    The Finance Ministry has notified the increase in transport allowance to Rs 1,600 a month from Rs 800 as announced in the Budget for 2015-16.

    As part of his “extension of benefits to middle class tax payers”, Finance Minister Arun Jaitley had doubled the transport allowance exemption to Rs 1,600 per month.

    From now onwards, an individual would get tax relief on Rs 19,200 per year as compared to Rs 9,600.

    The notification issued by the Central Board of Direct Tax (CBDT) further said the exemption limit for blind and orthopaedically handicapped to has been doubled to Rs 3,200 a month.

    Transport allowance is exempted from income tax.

  68. Really, q wonderful information. Many person can try to cover possible benefits. NO BODY CAN SAVE 100%.

    If I CAN DO THIS ALL THINGS, BUT NO ANY MORE MONEY IN MY POCKET TO FOR SMOKING OR HOUSE EXPENSE.

  69. Hello Suresh,

    Thanks for this article.

    You have not mentioned about Let-Out option in Home Loan category.
    If we self occupy the house then max of 2,00,000 /- will be exempted from Income tax, But if you let-out property then we can get the exemption on actual Interest.

    + There will be another source of income form the let-out property.

    Can you please put some light on below case :
    Lets say Home Loan Interest amount is 2,50,000/-
    case 1 : Getting rent of 12,000/- so the total 238000/- will be exempted. Am I correct ?
    case 2 : If no rent – could I get the actual interest i.e. 2,50,000/- exempted ?

    Thanks

  70. And what do we eat and spend for ourselves if we take these many policies, home loan interests and expenditures?

  71. Hi,
    Thanks for the good information, I am surprised to see some tax exemption components mentioned here which I never heard ex: transport allowance. What is this? Under which section i can claim this?

  72. Please also mentioned take home salary also available for family expenditure then everyone understand it properly that whether they should go for investment or not

  73. I have checked in my company they are not providing phone/Mobile reimbursement and News Paper Bill, can I claim it separately ?

  74. Your article is related to salaried persons only. Can u inform how to pay zero tax and get tax free income for over Rs 10 lakhs by a self – employed person.

    1. Kongbon, you can take relevant tax saving options from this pertaining to you. There are no specific additional deductions available for self employed person.

  75. Dear sir.
    Thanks for all above
    Pls solve my query
    I am a govt employee..
    10% is deducted for NPS from my salary every month as mandatory..
    Where can I include this amount
    In 80ccd or 80ccd2
    Coz if I include it in 80ccd I can save 50ooo ans in 80ccd it will be 1lk

    What if 80ccd is total 20000 can I divide it as 150000+50000 as 80c and 80ccd as NPS IS INCLUDED IN BOTH.

    Do I need to deposit tickets for LTA

    Do I need to deposit bills for medical claim like my wife is pregnant .can I show medical checkups bills..or cal claim the rebate without bills
    Thanks

  76. Its a wonderful information shared by you…many thanks to you… I wasn’t aware of the exemption on fuel expenses…19,500/- can you please guide on how to apply for it because.it comes as a a
    part of ctc

  77. Nice article. But it leaves me puzzled for 1 thing. If someone has a 10L earnings, how much does one have in hand? Because daily life needs money for your groceries and provisions.

  78. Second home policy where there is no cap on Interest paid is a big tax payer If u declare income from that home too

  79. hi, i had 8 lakh rupeees in my account? recently resigned from my job? should i have to pay income tax my savings? what to do if there is income tax to be paid? binoy

  80. Dear Suresh,
    I work for a start-up, my employer will not get me a PF account in near future, my CTC is 9.9 LPA. Can I have have benefits of PF account by opening my PF account separately? If yes what should I go for EPF or PPF?
    Thanks a lot.

    1. Arjun, Employers open EPF account for employees, you cannot do that. You can open PPF account where you can get 8.7% tax free interest apart from 80C exemption.

      1. Dear Suresh,
        Thanks, I had a EPF account with one of my previous employers, I exited from that company 4 years back.
        If I withdraw the PF amount will that be taxable?
        Can I transfer that amount directly to my PPF account?

  81. I am 65 year self employed share sub broker and also investor cum trader. My income comes from sub broking consulting trading and short and long term investments .
    Guide me how much tax I can save if my income is 1000000 (with out long term investment income)
    No housing or any loan liability there ,
    No any LIC POLICY
    Now suggest legal tax savings way
    Lalit shah

  82. CAN I CLAIM INCOME TAX REBATE UNDER 80D BY OPENING NPS ACCOUNT IN MY WIFE’S NAME ( SHE IS HOUSE WIFE ) ?

    1. I am a govt. employee and can I take tax benefit under NPS account. Can I open NPS account, because I have epf account already.

  83. Sir … Greetings … Very informative … How can a business person offering consultancy services saves taxes if he earns 10 lacs PA …. Regards

  84. Good article. I want to add that either the transport allowance or Fuel expenses can be exempted from total salary.

  85. Please quickly write a review on discount brokers, we know they save us a lot of money but how safe they are.

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