Tax Tips: Zero Tax on a Salary of ₹15.85 Lakhs! Save Thousands by Adopting This Method..

The method of saving taxes under the new tax regime has changed significantly compared to the past. Now, it is not just investments but also the salary structure that plays a crucial role. With proper planning, one can reduce their tax liability to zero even on an annual salary of ₹15.85 lakh; however, this requires fulfilling certain specific conditions.

Saving taxes under the new system is no longer as easy as it used to be, yet with the right planning, one can still derive substantial benefits. If your annual salary stands at ₹15.85 lakh, you can still bring your tax liability down to zero. The most critical step in achieving this is to reduce your taxable income.

**Here is the Method for Saving Taxes**
The straightforward approach involves intelligently structuring the various components of your salary. First, a standard deduction of ₹75,000 is subtracted. Additionally, contributions made by your employer towards the EPF (Employees' Provident Fund) and NPS (National Pension System) also serve to reduce your taxable income. Some companies offer meal vouchers and other benefits, which can further lower the tax burden. If, after factoring in all these elements, your taxable income falls below ₹12 lakh, your entire tax liability can be waived through government rebates. This constitutes the fundamental basis of this entire strategy.

However, this method does not work for everyone. Your employer must establish an appropriate salary structure right from the outset. Furthermore, proper records of all benefits must be maintained, and all regulations must be strictly adhered to. If there are any lapses in this process, you will not be able to avail of the tax benefits. The new tax system has made it abundantly clear that—rather than mere savings—salary planning has now become the more critical factor. In the times to come, this approach is expected to be the most effective method for saving taxes.

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