tax exemption
In the new tax regime, the method of saving tax has changed a lot. Now not only investment but also salary structure plays an important role. With proper planning, tax can be made zero even on an annual salary of Rs 15.85 lakh, but for this some special conditions have to be fulfilled.
In the new tax system, saving tax is no longer as easy as before, but with proper planning, big benefits can still be availed. Even if your annual salary is Rs 15.85 lakh, you can bring your tax liability to zero. For this the most important thing is to reduce the taxable income.
This is the way to save tax
The simple way to do this is to design the different parts of the salary wisely. First of all, standard deduction of Rs 75 thousand is deducted. Apart from this, the EPF and NPS contribution given by the company also reduces the taxable income. Some companies offer meal vouchers and other benefits, which can further reduce the tax. Taking all these together, if your taxable income falls below Rs 12 lakh, then the entire tax can be waived off through government rebate. This is the main basis of this entire plan.
However, this method does not work for everyone. For this, it is important that your company creates the right salary structure from the beginning. Also, all the benefits should be properly recorded and followed as per the rules. If there is any deficiency in this, then the tax benefit will not be available. The new tax system has made it clear that now not only savings but also salary planning has become more important. In the future, this method will be considered more effective for saving tax.
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