Many people in India don’t even file ITR either because their income is not taxable or because they don’t know how to file ITR and they don’t want to pay a fee to professionals for filing ITR on their behalf. But they don’t know what they are missing. Every person who is earning any amount must file ITR whether their income is taxable or not. Because on the basis of ITR you get Loan facility, Credit Card, Life Insurance etc. Income shown in ITR is the only white income.
In this blog, I will tell you how you can pay ZERO Tax if your earning is ₹7,85,000 in FY19-20.
| Particulars | Salary | Business |
|---|---|---|
| Income From Salary/Business | ₹ 7,75,000.00 | ₹ 7,25,000.00 |
| Interest From Saving Bank A/c | ₹ 10,000.00 | ₹ 10,000.00 |
| Gross Total Income | ₹ 7,85,000.00 | ₹ 7,35,000.00 |
| Less: Standard Deduction** | ₹ -50,000.00 | - |
| Net Total Income | ₹ 7,35,000.00 | ₹ 7,35,000.00 |
| Less: Deductions | ||
| PPF/SSY/NSC/ELSS/Life Insurance (u/s 80C) | ₹ -1,50,000.00 | ₹ -1,50,000.00 |
| NPS [u/s 80CCD(1B)] | ₹ -50,000.00 | ₹ -50,000.00 |
| Medical Premium (u/s 80D) | ₹ -25,000.00 | ₹ -25,000.00 |
| Saving Bank Interest (u/s 80TTA) | ₹ -10,000.00 | ₹ -10,000.00 |
| Net Taxable Income | ₹ 5,00,000.00 | ₹ 5,00,000.00 |
| Income Tax Liability | ₹ 12,500.00 | ₹ 12,500.00 |
| Less: Rebate (u/s 87A) | ₹ -12,500.00 | ₹ -12,500.00 |
| Net Tax Liability | Nil | Nil |
| ** If you earning from Salary then there is additional Standard Deduction of ₹50,000. |
In the above table, we have assumed your Business Income is ₹7,25,000 (₹7,75,000 in case of Salary) and you are earning interest from saving bank account equals to ₹10,000.
So, the Total Income equals to ₹7,35.000 (₹7,85,000 in case of Salary).
If you claim the above deductions in the same manner as shown in the table above then you will have to pay ZERO tax.