How Much Maximum Tax can be saved in India?

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Maximum tax can be saved with the best salary structure. How to plan for the salary every year and how to reduce tax on it and increase our home take salary. Here are some of the safe components of your salary structure which can minimize your tax burden and help you plan your Salary Structure to reduce tax on their salary and increase their home take salary.
 
A salaried employee who earns gross total income of Rs. 10,89,720/- can avails tax exemption benefit by way of allowances, savings and deductions detailed below, need not pay any income tax.

Summary of Maximum Tax can be Saved


Sr.No.
Salary Components
Amount(Rs)
(I)
 
1
2
3
4
5
6
7
8
9
10
11
 
(II)
 
1
2
3
4
5
6
7


(III)
(IV)
(V)
(VI)
Tax Free Allowances
 
Medical Reimbursement
Transport Allowance
Meal Coupons
Mobile Phone & Internet reimbursement
Company Car & Maintenance Allowance
Uniform Allowances
Leave Travel Allowance
Children Education / Hostel Allowance
Newspaper & Periodicals Allowance
Gift Voucher
House Rent Allowance (HRA) (approx.)
Total Tax Free Components
 
Deductions
 
80C
80CCD (1B)
80D Medical Insurance
80E Interest on Education Loan
80EE Interest on HL (First time buyer)
80G/GGC Donation
80TTA saving a/c interest
 
Total Deductions
 
Interest on House Property Loan Sec 24
Tax Rebate 87A 2500 (10% of Income)
Basic Income Exemption
Total Tax Free Income (I+II+III+IV+V)

 
15000
19200
42120
24000
21600
24000
12000
4800
12000
5000
60000
239720


 
150000
50000
55000
50000
50000
10000
10000
 
375000

200000
25000
250000
1089720


Note that, we have not considered few tax-free allowances like driver salary, car maintenance, Interest free loan, reimbursement of health club etc, and also not considered few deductions like medical treatment, donations, provident fund 12%, that could be save your taxes more.

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