Income Tax Calculator: About a month is left and the new financial year will start from April 1. Along with this, your annual income up to Rs 12 lakh will also become tax free. After applying standard deduction of Rs 75 thousand, this figure becomes Rs 12.75 lakh. But what if he earns more than this i.e. Rs 17 lakh?
Income Tax Calculator: It is possible that if someone asks you about this, then you will say at first that he will have to pay tax. But it is not so, maybe it may seem like a joke to you at first but it is true. Let us explain some calculations for this.
The government has made income up to Rs 12 lakh tax free under the new tax regime. Under this, you do not even get the exemption available under section 80C. According to ET’s report, despite this, you can make income up to Rs 17 lakh tax free in the new tax regime. Let’s know how?
The total salary given by companies to their employees is called CTC (Cost to Company). Some part of it is for travel expenses. According to tax advisor firm Bhuta Shah & Co, if you choose the new tax regime, then you will not have to pay tax on this part of your salary. But, you can take advantage of this exemption only if this expense is incurred for commuting for your office work.
According to Bhuta Shah & Co, in some companies, special employees are given a fixed amount for travel expenses, which is called transport allowance. This allowance is usually up to Rs 3,200 every month. That is, under this, Rs 38,400 is received annually. It is worth noting that this facility is available only to those employees who are physically disabled.
Salaried employees can get tax rebate on their telephone bill expenses. According to Yogesh Kale, Executive Director of tax advisor firm Nangia Andersen LLP, tax exemption can be available on phone and internet bills in both the new and old tax regimes. There is no limit on exemption on telephone and internet bills in both the regimes.
Car lease is an agreement in which you use the car for a fixed period, for which you make monthly payments. At the end of the lease period, you can return the car or buy it. Under the car lease policy, cars are provided for personal and official use. In this, you get a tax exemption of Rs 1800 per month on a car with a 1.6 liter engine.
By combining all these methods, you can avail the benefit of zero income tax under the new tax regime on salary income up to Rs 17 lakh.
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