Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
1 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for
Financial Year 2016-17 Budget 2016
Posted: 8 months ago | 2425793 Views | 73 comments |
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
2 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
The Budget has made no significant change for Tax Rates for Individuals. The Individuals who earn income of Less than 5 Lakhs
(../../index.php
)
LOGIN ()
REGISTER ()
rupees will get Rs 5000/- as Tax rebate under section 87A. There is increase insurcharge on income tax levied on individuals
earning income of Rs 1 crore or more from 12 per cent at present to 15 per cent. This move is aimed at taxing the rich. The Middle
Class always pay effective more tax including indirect taxes and have to plan their retirement and savings at the same time save
on overall tax outgo. The Article gives you brief idea on how to save tax and at the same time make proper investment and cover
insurance and Medical expenses risk.
1.
Deduction under 80C is related to deduction that an individual can deduct from his gross taxable income in order to reduce his tax
liability by investing in specified investment. It is applicable to individuals and HUF. An assessee can get deduction under section
80C upto a maximum of Rs.150000.The qualifying investments and expenditure as deduction under 80C are investment in
Insurance Policy, Post Office Time Deposit Account, Investment in Equity Linked Saving Scheme (Mutual Funds), Public Provident
Fund, National Saving Certificate (Read Article Why to invest in National Saving Certificate ?) (https://expertmile.com
/arti.php?article_id=1019&title=Why-to-invest-in-National-Saving-Certificate-), Tuition Fees Paid, Bank Fixed Time Deposit,
Repayment of Principal of Housing Loan, SukannyaSamriddhi account, to Read more about Deduction under section 80C of
Income Tax Act -
Specified
investment /
(https://expertmile.com/arti.php?article_id=1027&
title=Deduction-under-section-80C-of-Income-Tax-Act-Specified-investment-Expenses)
Finance Minister ArunJaitley in Budget 2015-16 introduced an additional income tax deduction of Rs. 50,000 for contribution to the
New Pension Scheme (NPS) under Section 80CCD. NPS is a voluntary pension scheme, which is regulated by the Pension Fund
Regulatory and Development Authority.This extra deduction of Rs. 50,000 on NPS will increase the total deduction allowed under
Section 80C and 80CCD of Income Tax Act to Rs. 2 lakh. In Budget 2016, the finance minister has made withdrawals from NPS on
maturity tax free upto 40% of the total corpus accumulated. Currently, none of the withdrawals were tax-free unlike other
competing instruments such as PPF and EPF where the total withdrawal was tax -free. This is a major step towards making the
NPS scheme more attractive and bringing it on par with the other EEE pension schemes. The Budget 2016 proposes to provide a
uniform tax treatment to the recognised provident fund, national pension system and superannuation fund.
It is proposed that 40% of the pension wealth received by an employee from the National Pension System Trust shall be exempt.
Read
Related
Article
National Pension
Scheme Return
Analysis and
Plan
Comparison
(https://expertmile.com
/arti.php?article_id=932)
Read Related Article Save Tax by Additional deduction under National Pension Scheme (https://expertmile.com
/arti.php?article_id=1035)
3.Home Loan Interest and House Rent Allowance (up to Rs 2.5 Lakhs or Rs 60 Thousand)
Employess gets HRA as a part of Salary. If the Employee is living in rented accommodation they can Claim HRA benefit and save
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
3 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
on taxes. If the Employee is staying with parents in that case too they can pay rent to parents and Claim HRA benefit. Click to
(../../index.php
)
LOGIN ()
REGISTER ()
read Article HRA House Rent Allowance Section 10(13A) - under the Income tax act 1961 (https://expertmile.com
/arti.php?article_id=1023&title=HRA-House-Rent-Allowance-Section-1013A-under-the-Income-tax-act-1961)
For employees who don't get HRA benefits, the FM raised the deduction against house rent from Rs 2,000 per month to Rs 5,000.
This would result in tax savings in the range of Rs 3,708 to Rs 12,204, depending on the income slab.
Further in Budget 2016 First time home buyers to get additional deduction of Rs 50,000 on interest for loan uptoRs 35 lakh. This
additional deduction has been given on interest for loan up to Rs 35 lakh, provided the house value doesn't exceed Rs 50 lakh.
For, the 2016-17 Budget proposes tax relief on interest payment on home loan if the property bought, or under construction, is
completed within 5 years from the end of the financial year in which the loan was availed instead of the current 3 years.Assuming
a loan of Rs 35 lakh to be paid over 20 years, the annual deduction comes to around Rs 2.5 lakh, including the Rs 2 lakh
currently available. At 9%, the interest outgo in the first year would be Rs 3.12 lakh. So, the buyer will save Rs 75,000 if he is in
the 30% tax-bracket
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
4 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
Many employers provide reimbursement ofTravel Expenses, Mobile and Phone Bill and for News Paper. Employee has to submit
(../../index.php
)
LOGIN ()
REGISTER ()
proof of expenditure.
Form the above Picture it is clear that if the Individual plan in proper manner for the year 2016 -17 financial year he can not only
save taxes but can also plan an investment in Resident Property if he is not owing one. For Retirement benefit NPS seems to be
better option considering current changes in Budget 2016.
Also read relevant article:
How to Pay Zero Tax for Professionals (CA, CS, Lawyers, Doctors, etc) earning Income of Rs 16 Lacs in Financial Year
2016-17 - Section 44ADA Budget 2016 Click here to read
(https://expertmile.com/arti.php?article_id=1103&title=How-to-Pay-Zero-Tax-for-Professionals-CA-CS-
Lawyers-Doctors-etc-earning-Income-of-Rs-16-Lacs-in-Financial-Year-2016-17-Section-44ADA-Budget-2016)
How to Pay Zero Tax for Business Receipts -Turnover of Rs 1 Crore for Financial Year 2016-17 Budget 2016 Click here to
read (http://expertmile.com/arti.php?article_id=1101&title=How-to-Pay-Zero-Tax-for-Business-Receipts-Turnover-of-Rs-1-Crore-for-Financial-Year-2016-17-Budget-2016)
For any query you can write to Chirag@cachauhan.in (mailto:Chirag@cachauhan.in) . Before making any decisions do consult
your Professional / tax advisor. Author does not take any responsibility for misrepresentation or interpretation of act or rules.
Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this
document nor for any action taken in reliance there on.
If you like my article, please share this on :
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
5 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
(../../index.php
)
Download
Application
Form
LOGIN ()
REGISTER ()
In case of business query on above subject, comment here or contact CA Chirag Chauhan
(https://expertmile.com/newview.php?profID=17)
PLEASE LOGIN FIRST TO COMMENT
I guess the relief of 5000 under sec 87 A is only for those who has taxable income of less than 500000.
So how can one having an annual income of 1200000 can avail it??
@ Supriya - the rebat is applicable on Taxable Income if it is less than 5 Lacs. In our Example Taxable
income will be less than 5 Lacs so applicable
the listing looks ok.. but it is not practical to avail all those.. as a person who has 12 lacs income.. will
not be able to save in all those...where is the disposable income...????
@ satish 3 Lacs can be disposable Income ! i.e 25000 per Month. Fair enough to spend !!
(//expertmile.com/newview.php?profID=8104) Daksh
Posted On: 8 months ago
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
6 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
(../../index.php
)
What about
Pvt. Employees
who get only salary no other benefits then how we can
LOGIN ()
REGISTER ()
Yes @ Rakesh
for deduction on housing loan Interest, I need to have a loan, jz to save tax at MMR y would I do that,
and transport and medical allowance needs proof, transportation I think its fine, but what about, medical, if I dnt get sick,
I dont get it
Sir i am a govt employee and my cpf is contributed towards nps on monthly basis. Is this (cpf)o be
included in the standard savings limit if 1.5 lakh or i can show this towards the 2lakh limit of nps and instead buy NSCs of
1.5 lakh.
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
7 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
(//expertmile.com/newview.php?profID=8753) yaaaaa
(../../index.php
)
LOGIN ()
REGISTER ()
Posted On: 8 months ago
(//expertmile.com/newview.php?profID=8096) AKHIL
Sir, Home Loan Interest (in case of First time buyer) max amt of exemption is 2,50,000 p.a Can we
claim 2,50,000 at regular intervals at every year? it it is possible how many years we can claim ?
(//expertmile.com/newview.php?profID=9462) Dipanshu
(//expertmile.com/newview.php?profID=9763) narayanan
sir, phone and communication expenses pls explain. Everyone using internet in home. It is a
Reimbursment? It is claim in IT?
(//expertmile.com/newview.php?profID=10720) Piyush
Hi, If I miss to claim medical expanse of 15k and it does not appear in form 16, then will I be able to
claim refund while filling return ?
@ Tejas - It can Practically. 100% of Employee Avail Transport and Medical despite they may not have
incured expenditure ! Hope you can read between lines @ Vikrant Rai - NPS you can claim seperate deduction uo tp 50k
@ Manish - Most of dedcution are same as for FY 2015-16 @Yaa - 80D is for Medical Premium paid and Prevenive health
check up. Read Details Article in Link Provided
@ Akhil - You can claim every year home loan interest amount of 2.5 LAcs @ Dipanshu - Its as per
Changes in Finance Bill 2016 and has increased dedcution of 50k @ Narayana - Youe Employer must structure your
Salary so that you can claim @Piyush - No you cannot
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
8 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
(//expertmile.com/newview.php?profID=12107) Manjukumar
(../../index.php
)
LOGIN ()
REGISTER ()
Posted On: 8 months ago
Hello...for a person who s having 5 lkh Income...what all things can be shown to avoid maximum
tax???
(//expertmile.com/newview.php?profID=9763) narayanan
sir, phone and communication expenses pls explain. Everyone using internet in home. It is a
Reimbursment? It is claim in IT? Pls explain
(//expertmile.com/newview.php?profID=13201) NAGARAJAN
Sir, Home Loan Interest (in case of First time buyer) max amt of exemption is 2,50,000 p.a , with a loan
amount less than 35 lakhs.Is it for first time buyers after 1st Apr 2016 or already existing First Home Loan.
(//expertmile.com/newview.php?profID=12981) nagesh
I am Consultant, my consolidated payment is something 606420 pm. i have tax saving mutual funds
Rs 70000/- per yr. & Rs 35000/- LIC and what other documents i can show for tax deduction. 1. Should I increase my
saving to makeup Rs. 150000/- ? 2. Can i separate it out Rs. 60000/- rent 3. What other expense I can show so that i pay
less tax.
(//expertmile.com/newview.php?profID=12981) nagesh
Posted On: 8 months ago
(//expertmile.com/newview.php?profID=14557) arshad
Posted On: 8 months ago
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
9 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
(//expertmile.com/newview.php?profID=14557) arshad
(../../index.php
)
LOGIN ()
REGISTER ()
Posted On: 8 months ago
hi since i was appointed before 2010 i am paying monthly subscription to general provident fund and
not towards NPS, then how can one save tax by contributing towards both PPF and NPS also
(//expertmile.com/newview.php?profID=14905) Ratan
I am a private employee having annal income of 1320000 and I get no other benifit. My form 16
provided by employer shows the total salary to be basic amount without any other bifurcation. So can I take the above
listed deduction?
@nagesh you can increase to 1.5 lac . you can claim HRA or Interest on housing loan
@ Arshad - You can get 1.5 for PPF and adittional Rs 50k for NPS @ RAtan - Email me your Form 16
at chirag@cachauhan.in
Sir, my salary component does not include medical allowance, travel allowance, newspaper and
periodical allowance. ..is it possible for me to claim benefit...
(//expertmile.com/newview.php?profID=17616) shital40@gmail.com
Posted On: 8 months ago
mam /sir pls service tax , Tds Vat Cst all tally erp9.0 detail working notes give me my mail id
shital40@gmail.com
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
10 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
Hi Chirag Sir, I am self employed IT professional, can i use all the deduction heads mentioned in the above list while
(../../index.php
)
LOGIN ()
REGISTER ()
return filing in the Assessment Year 2016-17?
@Chirag chauhan sir I know about from a newspaper article and I hope u r doing fine and your physio
is going good, thnx for the answer
@ Chris - You need to ask your employer to change salary structure so that you can claim all benefit.
Unless your employer change you cannot avail it. @Shital - You can search in this site you should get most of your
requirments @ Pramod - Read this articlehttps://expertmile.com/arti.php?article_id=1103 @ Tejas - Yes doing fine. Hope
you too doing good. Thanks
Hi Sir , Can employer provide conveyance Reimbursement of Rs.120000/- to employees for personal
fuel expenses if they provide bills (Not for Office travel)?
@Neha - Traveling should be for office use only and not for personal travel
If company is not giving any benifit of LTA, Treavel reimbursement, Car reimbursement, new paper &
Periodicals etc than how can you claim as a rebate.
@Manish - You cannot claim unless your CO provides these benefits. You need to convince them to
structure your salary in above manner so it can be good take away for employees
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
11 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
(../../index.php
)
LOGIN ()
REGISTER ()
(//expertmile.com/newview.php?profID=21395) Nisha
How can a director getting salary of Rs 1200000 income save his income tax.
(//expertmile.com/newview.php?profID=21790) aruna
(//expertmile.com/newview.php?profID=21790) aruna
(//expertmile.com/newview.php?profID=22052) temporary
this formula of yours is not for everyone earning 12 lacs pa and you should correct the article heading,
my ctc is 12 lacs but i have a desk job and do not get to travel for office use at all so tell me this how do i claim this
reimbursement of 120000 as traveling and fuel reimbursement (my ctc has conveyance allowance) Newspaper &
periodicals????? my company and few of my friends none are reimbursing these expenses (so i think you should take
practicality into account before writing anything) 24000k-2k monthly on newspaper & periodicals, really?????? lastly
phone & communication 36k there is a limit on phone reimbursement in my company and i think this will be the case in
most of the companies. i think you should write an article with real life scenarios and practicality. thanks
@ Temporary. It is most practical and applied by most of organization and employees to save tax in
most effective way! As one size do not fit every one in tax planning too, my suggestion are general and cannot apply in
each and every case! However Majority have benefited from above planning !
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
12 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
(../../index.php
)
LOGIN ()
REGISTER ()
Posted On: 5 months ago
If anone who is earning 6.5 lakhs yearly.who has brought a property of 50 lakhs with the help of his
siblings at the cost of 40lakhs.investment will be 50% and 25 % and 25 % each. Then they should pay the tax for the
remaining 10 laks which they have got as a profit from the seller. Actual cost of land as per government is 50 lakhs but
the seller is sold at 40 lakhs for his requirements and the taxes are paid for 50 lakhs to the government as per rules. Or
they should show this as income in their Form 16 in the returns.
Wef from 1st June 16, we need to give bills for LTA exemption. We also need to pay mediclaim
premium for deduction. Same with mobile reimbursement and medical bills reimbursement. Plus in most of companies,
LTA and medical bills are over and above CTC. Also if I invest (or spend) this much, my disposable income would be
around 3 lacs. Considering I have a housing loan of 30L, EMI would be around 25- 30K. So how do I survive? Investing in
80c and NPS will block money for at least 5 yrs. So how to strike balance?
@ KSSR Mail me in detial your query ! @ Mandar Disposable Incoem of 3 Lacs approx is 25k pm its
enough for household expesnes. Investment you have already made and cliam all dedcution
Hello Chirag, Kindly let me know how to claim tax exemption in a)Phone,communication b) Medical
expense for self & parents
@ Prashant - Your Employer need to provide that in your salary structure so that you can claim
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
13 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
(../../index.php
)
LOGIN ()
REGISTER ()
Posted On: 5 months ago
Hi chirag i am in armed forces where in pay we get many allowance like kit
maintenance,MSP,TPT(transport allowance) . . Can Dese allowance be minus frm the total taxable salary. . . And also we
claim ltc evry year to travel home station. . For wich amount get added to our salary can dis be subtracted. . . Further
dearness allowance is also dere is mandatory deduction of 5k for NGIS(insurance scheme). . And also wen we travel
officially to different places on temporary duty we get money credited in my account for travelling n stay fr same we claim
wd d bills n tickets. . Wat can be done with d amount added in our salary. . . . . Seeking fr your reply
(//expertmile.com/newview.php?profID=27093) D H Atul
Posted On: 5 months ago
(//expertmile.com/newview.php?profID=27093) D H Atul
Posted On: 5 months ago
Please clarify Rs. 12000 in meal coupons. The maximum tax free is Rs. 100 per day. That means a
total of Rs. 3000/- per month only
can anyone file my return and get me refunded all my tax which i gave............ treat for him/her for
sure :)
(//expertmile.com/newview.php?profID=27571) JRAOyeddu
This article is providing misleading information. about Zero tax. NPS is for employee joined job after
year 2004. How LTA carries tax benefits if office is reimursing teh travel cost?. Similarly how newspaper and telephone
bills carry tax benefits when there are getting reimbursed?
@ Alok - your co need to provide your LTA benefit to claim. @ Atul - We have taken meal
reimbursement on conservative basis @ Manish - You are asking like Christmas Santa Gift - You can get all your taxes
dedcuted back provided you plan well during the year ! @ JAR - Nothing in this article is misleading. All benefits can be
very well calimed if proeprly planned.
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
14 of 18
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
@ anshul - Please email me with our form 16, will review and get back to you
(../../index.php
)
LOGIN ()
REGISTER ()
(//expertmile.com/newview.php?profID=27093) D H Atul
Hi Chirag, For FY-2015-16 , Is Reimbursement of Expenses for Mobile is tax free as you mentioned
above. We are claiming Mobile bill reimbursement from organization but thats not a part of Pay Slip. Please confirm.
Thanks in advance. Nikhil Sharma
@ Nikhil - Its Reimbursement so not show in salary slip. However it is one of component in your salary
structure
(//expertmile.com/newview.php?profID=31288) Sharon
Hi Chirag, Can you tell me more about Fuel and Maintenance Reimbursement. Some companies give
this up to 1,50,000 p.a but IT rules allows an exemption of 1800/-p.m if car CC is less than 1600cc. Also they give driver
reimbursement up to Rs 1,20,000/- but IT rule allows an exemption of Rs 900/- p.m. Can you tell me how does the whole
amount get tax exempted and how does it get accounted for while calculating tax. Thanks!
(//expertmile.com/newview.php?profID=31290) Ritesh
Posted On: 1 month ago
Hello Chirag!! I have an income of 4.5lpa. I get my whole salary from employer except a TDS deduction
of 1000 per month. What should i do and discuss with the employer for saving tax. I am planning on full 1.5 lacs 80C.
except that i think i am left with 50K more to bring my slab to no taxes. I live in rented place. How can i use that? Thanks!
I am filling income tax online but did not get that much option there. can you please categorize by their
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
15 of 18
respected section.
(../../index.php
)
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
LOGIN ()
REGISTER ()
I am a defence pensioner (retired recently), doing a private job now. Am getting Rs 2,88,000 as pension
and 7,80,000 as salary p.a., thereby making it to be 10,68,000 p.a. Is there any special provision for exemption on
pension or will it be treated like normal salary??
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
16 of 18
(../../index.php
)
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
LOGIN ()
REGISTER ()
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
17 of 18
(../../index.php
)
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
LOGIN ()
REGISTER ()
11/11/2016 6:33 PM
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financ...
18 of 18
(../../index.php
)
https://expertmile.com/arti.php?article_id=1105&title=How+to+Pay+Ze...
LOGIN ()
REGISTER ()
11/11/2016 6:33 PM