One can minimize their tax liability and pay zero tax in India by utilizing various tax exemptions and deductions, investing in tax-saving instruments, planning income and investments, opting for the new tax regime, and using carry-forward losses.
It is important to stay updated on the latest tax laws and regulations and seek professional tax planning advice to make the most of the available options.
Pay zero tax legally in India, but it depends on income, investments, and tax laws. Here are a few legal ways to minimize your tax liability and pay zero tax:
The Income Tax Act provides a number of exemptions and deductions, including those for HRA, LTA, medical costs, student loan interest, and house loan principal. You can lower your taxable income and pay no tax if you take advantage of these deductions and exemptions.
Tax deductions are available for a number of investment options, including the Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), National Pension System (NPS), and tax-saving fixed deposits (FDs). You can pay no taxes by investing in these instruments while lowering your taxable income.
It is important to plan your income and investments in such a way that you can avail of maximum tax benefits. You can consult a tax expert or a financial planner to help you plan your investments and reduce your tax liability.
The government of India has introduced a new tax regime with lower tax rates but no exemptions and deductions, allowing taxpayers to choose the right tax regime based on their income and investments.
You are allowed to carry over losses from prior years and deduct them from your current year's income. This may enable you to pay no taxes by lowering your taxable income.