Tax Saving Tips: Take advantage of this tool to avoid tax, there will be no tax on salaries up to ₹ 12 lakh..

Income Tax Savings: Want to save tax and can't think of anything else? With increasing salaries, the tax burden is also increasing. In such a situation, what should be the tool so that the salary does not come under the tax net or can save the tax completely? So now is the time for your financial planning. Planning plays an entire role in tax saving. Believe me, if the planning is correct then there will be no tax on your income i.e. salary. Means zero tax. Let us know how.

Take advantage of reimbursement

According to income tax rules, tax can be saved if tax deductions and tax exemptions are used properly. However, for this, you will have to keep your salary structure in such a way that the tax scope is not high. Apart from this, you can avail more benefits from reimbursement.

0 What needs to be done for TAX?

Now the matter is that to avoid any tax on salary, the coordination between investment and savings will have to be maintained. If your salary is Rs 12 lakh and you take full advantage of reimbursement and investment tools, then definitely there will be no tax on the salary. The entire salary will be received without tax.

The option to change the salary structure remains in your hands. You can also request this from company HR. There is a reimbursement limit. But, it can have multiple tools. Convance, LTA, entertainment, broadband bills, petrol bills, and entertainment or food coupons can also be used in reimbursement. With the help of all this, taxes can be saved. Apart from this, there is also the option of HRA to save tax.

LTA- Leave Travel Allowance

LTA benefit can be availed twice in 4 years. This includes the travel plan fare. This is 10 percent of your basic salary. LTA of Rs 60 thousand will be available on a basic salary of Rs 6 lakh. If we look at the annual average, tax exemption can be availed on Rs 30 thousand.

This is how you get benefits in HRA

Three figures are included in claiming HRA. Tax exemption will be given to the one which is lowest among these three. In the salary structure, the HRA given by the company is according to metro and non-metro cities. There is an exemption to claim HRA up to 50% of the basic salary in a metro city and 40% of the basic salary in a non-metro city. The amount that is left after deducting 10 percent of the basic salary from the total rent can be claimed as HRA.

How will your HRA be decided?

The fare in the metro city is Rs 20 thousand. This means 20 percent of your total monthly salary. The basic salary will be 50 percent of CTC. In this case, your basic amount is Rs 6 lakh. If you get an HRA of about 40 percent of the basic salary from the company, then you will get an HRA of about Rs 2.40 lakh annually. But, since you live in a metro city, you can take HRA up to 50 percent i.e. Rs 3 lakh. At the rate of Rs 20 thousand, the annual rent was Rs 2.40 lakh. After deducting 10 percent of basic salary i.e. Rs 60 thousand, the total HRA became Rs 1.80 lakh. Now Rs 1.80 lakh is the lowest among the three figures given above. In this situation, you can claim Rs 1.80 lakh annually.

How will you get the benefit of reimbursement?

1. Conveyance Allowance: Those in the salary bracket of Rs 12 lakh usually get a reimbursement of Rs 1-1.50 lakh. Meaning, a conveyance allowance of Rs 1.50 lakh will be completely non-taxable.

2. Broadband bill: Tax exemption can also be available on broadband bill. Get it included in the reimbursement. For this, an allowance of Rs 700-1000 is available every month. Let us assume that under this you get Rs 1000 every month i.e. your annual non-taxable salary will be Rs 12000.

3. Entertainment Allowance: In entertainment reimbursement, you can claim it by showing the food bill. Those with a salary up to Rs 12 lakh will be non-taxable up to Rs 2000 i.e. Rs 24 thousand every month.

4. Uniform, Books or Petrol Bills: Different companies give reimbursement in the name of uniform, petrol or books bills. In this category also you can take Rs 1000-2000. By taking Rs 1,000 as reimbursement every month, Rs 12,000 annually will come into the non-taxable category.

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