22 Lakhs Salary. Zero Income Tax.

Step 1: Declare Contribution to National Pension Scheme

Invest in National Pension Scheme(NPS) and secure your future. Save income tax of up to INR 75000.

By investing in NPS I can save up to 75000 on Income Tax.
Let me specify the Employee Contribution under Section 80CCD(1B)
and employer contribution under Section 80CCD(2)

I’ve an option to invest 1.5 lakhs under Section 80CCD(1) but, I’ll invest that in Section 80C.

My tax liability has come below 4 Lakhs.

Step 2: Declare House Rent

Stay in a premium accommodation with your family. Save income tax of up to 30% on your House Rent!

Now, let me declare my House Rent to claim HRA Exemption. I can save income tax of up to 30% on my house rent.

As you see, HRA Exemption brings my income tax close to 3 Lakhs. At this point onwards old regime is beneficial to me.

The Income Tax Calculator also tells me how my HRA exemption is calculated.

Step 3: Declare Medical Insurance Premium

Purchase a premium medical insurance to secure your family. Save income tax of up to INR 30,000!

I’ve medical insurance for my family. This saves income tax of 30000

Now the Income Tax has come below 3 lakhs

Step 4: Declare Home Loan

Purchase an affordable home worth 45 lakhs or less with a home loan.
Save income tax of up to INR 1.5 lakhs in a Financial Year.

I’ve purchased an affordable home this year which saves income tax of 1.5 lakhs.
I’ve to declare this under three different sections

First, let me declare the stamp duty on purchase of the new home and home loan principal under Section 80C. But, Section 80C already has an investment of more than 1 lakh as I’m contributing to the Provident Fund. Since Section 80C has a limit of 1.5 lakhs, I can claim only 50,000 under Section 80C now.

Section 80C is very popular as it allows deduction on Life Insurance Premium, Mutual Fund Payments, school fees, and so on.

Now, let me declare 2 lakhs of home loan interest under Section 24(b)
The remaining home loan interest is to be declared under Section 80EEA to claim additional benefits on affordable home.

Now the Income Tax has come down to 1.5 lakhs

Step 5: Claim Leave Travel Exemption

Travel with your family within India. Travel by road, rail or air.
Save income tax of up to 32% of the travel cost!

Let me claim the air ticket charges for my family trip to Kashmir.

As you see, my income tax has come down to almost 1 lakh

Step 6: Claim deduction on Electric Vehicle

Help the environment by purchasing a new electric vehicle. Save income tax of up to INR 30,000 in a financial year!

I had purchased an electric car last year, let me declare the interest on car loan for the current financial year.

Now, my income tax has come below 80000

Step 7: Declare donations to approved funds and charities

Contribute to Relief Funds, NGOs and other charities. Save income tax of up to 30% on the contribution.

Now the income tax has come close to 70000

Step 8: Declare interest on education loan

Get income tax deduction on loan taken for higher education. Save income tax of up to 30% on the loan interest!

Let me declare interest on education loan for my son’s higher education.

Now the income tax is below 55000

Step 9: Declare medical expenses against handicapped dependant

Declaring medical expenses for my dependant’s treatment.

Now the income tax is below 29000

Step 10: Declare medical expenses on specified disease

Let me declare medical expenses for my father’s cancer treatment

Finally, my income tax has come down to nil.
I’ve saved Income Tax of more than 4 lakhs with the help of this Income Tax Calculator.

Note that I’ve received Standard deduction of 50000, and a rebate of 12476.