Salaried class have always complained of raw deal year after year in income tax laws. But the good news is you can still take care of to pay No (NIL) income tax on salary of up to Rs 20 lakhs (Salary below means expense to company). All you require to have is right salary framework as well as spend in RIGHT Tax conserving strategies!
Salary framework is very crucial to maintain tax obligations reduced:-The bright side is most employers are partially flexible with income structure. We give you one such sample income framework for CTC (Price to Company) of Rs 20 lakhs.
We have revealed the tax reduction on both HRA and Home Mortgage. There are people that believe that both can not be used at the same time. This is NOT true. You can take advantage of both HRA as well as Home Loan even if your home as well as rented out location remains in the very same city.
Regular Monthly Pay Slip (after Income Tax on Salary):.
We have actually seen the salary framework and how you need to pay 0 income tax obligation even when the CTC (Expense to firm) is Rs 20.41 lakhs. Currently lets take a look at how your Month-to-month Wage Slip would appear like.
Gross Income– Rs 1,32,500.
Deductions– Rs 30,033.
Net Income = Rs 102,467 [1,32,500– 30,033]
Food/Gift Discount Coupon– Rs 2,200 monthly.
Additionally Worker would certainly obtain Food Coupons worth Rs 2,200 on a monthly basis (which can be utilized for meals, dining in a restaurant in restaurants or getting grocery).
Repayment (on entry of expenses)– Rs 1,35,600 (Yearly).
As you can see the monthly payout is low and a great deal of parts are compensation. To balance this a lot of companies pay all repayment month-to-month and deduct taxes at the end of year if the costs is not sent.