Even if you have an annual income of 12 lakhs, you will not have to pay a single rupee of tax, know this math

The month of February-March is spent with the challenge of getting rid of government problems along with work among employees and companies. In this, apart from completing the job functions, the employee also has to provide details of his investments to the company. So that tax saving option can be prepared. If you do not provide this information and file ITR, Income Tax sends a notice to your home.

As per the rules, under the old tax regime Rs. 5 lakh income and under the new tax regime Rs. Income up to 7 lakhs has been kept tax free. In the old tax system, some tax exemptions are also given by the government. Today we are going to tell you a trick with the help of which you will be able to get the benefit of zero tax on earnings up to 12 lakh rupees.

How to get zero tax benefit?

Suppose your annual package is Rs. 12 lakhs, then how can you make your income tax nil? Will know today. Let's understand the complete process in these 3 steps.

First step

If your salary is Rs. 12 lakhs, then you can structure it in such a way that your HRA is Rs. 3.60 lakh, your LTA is Rs. 10,000 and a phone bill of Rs. 6,000 will be. Under Section 16 you will get a standard deduction of Rs 50,000 on salary. You can claim exemption on profession tax of Rs 2500. You under Section 10 (13A) Rs. 3.60 lakh as HRA and under Section 10 (5) Rs. 10,000 can also claim LTA. With this deduction, your taxable salary comes down to Rs. 7,71,500 will be.

Second step

If you have invested in LIC, PPF, EPF or you have paid your child's tuition fees, you can claim under Section 80C Rs. 1.50 lakh can claim an additional deduction. Those who have invested in the Tier-1 scheme of the National Pension Yojana are eligible for an additional deduction of Rs 50,000 under Section 80CCD. After both these deductions, your taxable income is Rs. 5,71,500 will be.

The third step

Section 80D allows you to claim tax exemption for premiums paid on health insurance policies. When you pay health insurance premium for yourself and your spouse or your children for Rs. 25,000 while you can claim the premium paid on your senior citizen parents' health policies for Rs. 50,000 can claim additional discount. Along with this you will get a deduction of Rs 75,000, which will reduce your income to Rs 4,96,500 and under the old tax regime, if your income is less than Rs 5 lakh, you will not have to pay any tax on that income. It means you will be eligible for zero tax.