If you use all the investment and reimbursement to the fullest, it is possible to get tax exemption even
on wages up to Rs. 12 lakh i.e. there will be zero tax on your salary (Zero Salary Tax Rs 12 lakh). No
tax will be payable on salary up to Rs. 12 lakh| Let's get to know him in more detail.
The phase of delivery of the Income Tax Declaration begins. Do people facing the burden of paying
taxes think that a little forethought would result in fewer or no tax deductions? Income Tax: No tax will
be payable on a salary up to Rs. 12 lakh, if you start tax planning as soon as the year starts, you can save a lot of taxes. Payroll tax can sometimes be zero as well.
For this, you can use the deductions and exemptions available in the Income Tax Law. Along with this,
you will also have to structure your salary in such a way that you can get maximum repayment
benefits. If you use all the investment and payback to the fullest, it is possible to get tax relief even on
wages up to Rs. 12 lakh i.e. there will be zero tax on your salary (Zero Salary Tax Rs 12 lakh).
First
work on your salary structure
At the beginning of the year, it is often possible to adjust the salary structure. You can decide for
yourself how much you need a refund and how much of that payment is taxable. With the
reimbursement, options such as transportation, LTA, food or entertainment vouchers, internet or
telephone accounts, and gasoline are available. HRA plays an important role in tax savings.
Let us
know how you can save on your taxes using all of these.
First, understand how much HRA is available
When claiming HRA you must produce 3 types of numbers. Whichever is the lesser amount among them, you get tax-free.
• HRA on salary provided by the company can be claimed.
• HRA can claim up to 50% of base salary in metropolitan cities and 40% of base salary in non-metro cities.
• After deducting 10% of your base salary from your total rent, you can claim that HRA amount.
• If you live in a metropolitan city, nowadays it is common to have a house rent of between 15 and 20
thousand rupees. Let's assume your rent is Rs 20,000 which is about 20% of your monthly salary
. Although the base salary is around 50% of your CTC, let's assume your base salary is around Rs 6
lakh. In this situation, in the 3 situations above, your HRA will look something like this.
• Typically, about 40 percent of the base salary is billed to the company as an HRA. Namely, you will get an HRA of around Rs 2.4 lakh.
• By living in a metro city, you can get an HRA of up to 50% ie. Rs 3 lakh.
• As per 20 thousand rupees, your annual rent is around 2.4 lakh rupees. Of this, after deducting 10% of your base salary, ie. 60 thousand rupees, its value reaches 1.8 lakh rupees.
Now, if you notice, Rs 1.8 lakh is the lowest among these three amounts, so you can get an HRA exemption with that much money.
You may also like- Auto Calculate IncomeTax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2023-24
You can avail this twice in 4 years. With that, you can travel somewhere and enjoy the leave travel
subsidy on the round trip fare. Generally, around 10 percent of base salary is allocated to companies as
a holiday travel allowance. Now if you have a base salary of Rs 6 lakh then you will get a travel
allowance of around Rs 60k. If you average every year, you get a tax break of around Rs 30,000. If the
vacation travel allowance isn't included in your paycheck, take advantage of it so you can take
advantage of it. Bear in mind that if you fall in the 30% range, you can save a lot of money with the
help of the LTA. It wouldn't be wrong to say that with LTA assistance you'll be 30% cheaper somehow.
He
should be refunded
Many things are offered to employees by all companies as reimbursement. Let's get to know each one and understand how much money you can save.
Shipping refund:
With this, you can usually get a refund of up to Rs 1-1.5 lakh from the company. Suppose your company gives you a transfer refund of Rs 1.5 lakh, then this amount will become non-taxable for you.
Internet
Policy:
These days, almost every business needs broadband internet. You can get broadband internet with good speed for Rs 700-1000 per month. In this case, the company offers almost the same amount of money back. If you don't have this component in salt in your area, then put it on your paycheck and get tax-free. Let's assume with this you can make non-taxable up to Rs 1000 per month ie. Rs 12,000 annually.
Reimbursement for meals or entertainment:
Previously, this reimbursement was in the form of a meal ticket, which can now be redeemed upon presentation of the food bill. With this, the company usually gives about 2000 rupees a month, ie. Twenty thousand rupees easily every year.
Uniform, fuel, books and more:
Several companies also offer some reimbursement on behalf of uniforms, fuel, books, magazines,
paper, etc. Speak immediately with corporate HR and ask if these facilities exist. If you get those
refunds, you could save a few more dollars in taxes. Generally, by combining all of these, you can get
cashback up to Rs.1,000-2,000. Let's assume you get a refund of only Rs.1,000 per month, yet you still
get the benefit of not paying tax on Rs.12,000 every year.
Features of this Excel utility:-
1) This Excel utility perfectly prepares your income tax according to your U/s 115BAC option.
2) This Excel utility has a completely revamped Income Tax section as per Budget 2023
3) Computerized Income Tax Form 12BA
4) Automatic computation Income Tax Exemption rented house U/s 10(13A).
5) Individual salary structure according to government and private group salary model
6) Individual Pay Sheet
7) Individual tax datasheet
8) Automatic Income Tax Form 16 Part A&B revised for the financial year 2023-24
9) Automatic Income Tax Form 16 Part B revised for the financial year 2023-24
