Tax Saving: There will be no tax of even a single rupee on salary up to 17 lakhs. This is the method..

From April 1, 2025, income up to Rs 12 lakh will be tax-free. What will happen if a person earns more than Rs 12 lakh? If someone tells you that a person earning up to Rs 17 lakh annually does not have to pay income tax, then you might think it's a joke, but let us tell you that this is true. For this, you just have to understand some calculations.

The government has made income up to Rs 12 lakh tax-free in the new tax regime, in this, you do not get exemption under section 80C like in the old tax regime. According to the report of Economic Times, despite all this, you can make income up to Rs 17 lakh tax-free in the new tax regime. We are telling you about it in detail here.

Convenience Reimbursement

Corporates keep a part of their employee's CTC (Cost to Company) for convenience reimbursement. According to tax consulting firm Bhuta Shah & Co, in the new tax regime, you will not have to pay tax on the convenience reimbursement part of the salary. According to Bhuta, this expense should be spent on commuting to and from office work, only then you can claim for convenience reimbursement.

Transport Allowance

According to tax consulting firm Bhuta Shah & Co, corporates give transport allowance to some special employees. According to the consulting firm, the company gives a transport allowance of up to Rs 3200 per month, which is up to Rs 38,400 annually. Let us tell you that this allowance is given only to physically disabled employees by the company.

Telephone and mobile bill

Salary-based employees can avail the benefit of their telephone bill amount in tax. According to Yogesh Kale, executive director of tax consulting firm Nangia Anderson LLP, phone and internet bills can be waived in the new and old tax regime. He also said that no limit has been set for telephone and internet bills in both the tax regimes.

Car lease policy

If the company permits you to lease a car, then you can get tax exemption on the car lease amount from your salary. In the car lease policy, cars are provided for personal and official use, in which you get a tax exemption of Rs 1800 per month on a car with a 1.6-liter engine. Through all these methods, you can get zero income tax in the new tax regime on income up to Rs 17 lakh.

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