Is it possible to Pay "Zero" Tax in Indian if your annual salary is 19 Lakh ?


Deductions you can claim as per Income Tax (with the minimum allowed deductions according to the 19 LPA package: 

House rent allowance (Let's Say: 4,00,000 considering the Basic Pay is half of the Salary & HRA Received is half of the Basic)

Interest on Home Loan: 2,00,000

Principal Value paid on Home Loan, LIC, PPF, PF, 5-Year FD: 1,50,000

NPS: 50,000

Interest paid on Educational Loan: No Limit (but we will take as 1,00,000 for here)

Amount paid on Mediclaim Premium of yours, parents, and preventive health insurance: 75,000

Deduction on purchase of Electronic Vehicle: 1,50,000

Donation: 50,000 (taken as a minimum during the year)

Standard Salary Deduction: 50,000

The deduction is allowed according to Salary structure such as Flexi Benefit Expenses (expenses used for Working purposes such as Purchase of uniforms, Books & periodicals, etc.). To claim these expenses, you have a Flexi benefit head available on a salary structure. Form now, assuming you have this, then we are taking the minimum deductions as Rs: 1,50,000

Leave Travel Concession: 50,000

Here come your Total deductions worth Rs. 14,25,000

19,00,000 (Less:) 14,25,000 = 4,75,000/-

And, as per the Income Tax Slab, a Net Taxable salary below 5 Lakhs in a year is completely Tax-Free

Congratulations, you have saved lots of Tax. Enjoy!

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