Well, it is and in this blog, we’ll tell you how to pay Zero Tax for CTC of Rs 20 Lakhs for FY 2022-23 for Salaried while filing a declaration with your employer. Stay tuned.
The term salary has come to be understood over the years as any form of fixed and predefined compensation assured to an individual in return for the services they render. These can be services offered to another individual or to an organization at large.
Depending on the total income that you earn in one financial year, you will be levied taxes accordingly. In other words, tax rules are never the same for all individuals in the country alike. For instance, as per the Indian taxation system, individuals in India earning less than Rs. 2.5 lakh are exempted from paying any tax.
1. Employee contribution to Provident Fund or PF returns upon maturity are tax-exempted
2. Professional Tax
3. Any income received in advance or arrears is permitted for tax exemption under Section 89(1) of the ITA
4. Some salaried employees are offered meal coupons such as Sodexo, which are tax-deductible up to a certain amount per month
5. Medical insurance can be claimed for tax deductions under Section 80(D)
6. Loan for education is also considered for deduction
7. Compensation offered to the employee on voluntary retirement is also tax-exempted
Now that we have a fair idea about the meaning of income tax, why it is levied and how to save taxes in general on your salaried income, let us proceed with the big question that we started writing this blog with How to Save Tax on a Salary Income of 20 lakhs and Above? Is it even possible to have zero tax on a 20+ lakh salary?