How can I reduce my taxable income to zero?

How to Reduce Taxable Income

1. Contribute significant amounts to retirement savings plans.
2. Participate in employer sponsored savings accounts for child care and healthcare.
3. Pay attention to tax credits like the child tax credit and the retirement savings contributions credit.
4. Tax-loss harvest investments.

How can I save tax on 20 lakhs?

Tax Exempted Salary Components

1. Meal Coupons.
2. Car Maintenance.
3. EPF (Contribution by Employer)
4. NPS (Contribution by Employer)
5. Gift voucher.
6. Mobile Phone and the Internet Bill Reimbursement.
7. Newspaper/Journal Allowance.
8. Children Education/Hostel Allowance.

How can I save my tax if I earn 15 lakh?

1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)

1. Unit Linked Insurance Plans (ULIPs)
2. Pension or Annuity Plans from Life Insurance Companies.
3. Public Provident Fund (PPF) & Employee Provident Fund (EPF)
4. New Pension Scheme Tier-I Account.
5. Senior Citizen Savings Scheme.

How can I reduce my tax deductions?

1. Use up your Rs 1.5 lakh limit under Section 80C.
2. 2) Contribute to the National Pension System.
3. 3) Pay Health Insurance Premiums.
4. 4) Get a deduction on your rent.
5. 5) Get a deduction on the interest on your home loan.
6. 6) Keep some money in your savings account.
7. 7) Contribute to charity.

How much tax can be save for salaried person?

It is a type of FD with which help in availing of income tax deductions for salaried employees on your investments of a maximum of Rs. 1,50,000. The related tax benefits for salaried employees are covered under Section 80C. Along with FDs, there are many other tax saving options for salaried people to create wealth.

Is it possible to reduce your taxable income to $0?

The more you make, the more the IRS withholds. As the senior tax specialist at Personal Capital, I often get the question: Is it possible to reduce your taxable income to result in a $0 tax bill? Careful tax planning could significantly reduce your tax burden to almost nothing even if you have a fairly high income. Here’s how.

How to pay zero (Nil) Tax on salary of 20 lakhs?

But the good news is you can still manage to pay Zero (NIL) income tax on salary of up to Rs 20 lakhs (Salary here means cost to company). All you need to have is right salary structure and invest in RIGHT Tax saving plans! We give you details below.

Can the average American pay no taxes?

Can the average American pay no taxes? Indeed, some taxpayers, even those with investment income over $100,000, could pay zero tax. But regardless of your income or net worth, it’s financially prudent to take any available tax deductions and credits you qualify for. John: 23 Year Old Recent College Grad

Can you pay zero tax on investment income?

Indeed, some taxpayers, even those with investment income over $100,000, could pay zero tax. But regardless of your income or net worth, it’s financially prudent to take any available tax deductions and credits you qualify for. In the first example we have John, a 23-year-old who wants to keep his tax bill at zero.