Do you want to know in which way you will have to pay zero tax? You can save all your taxes. Well, that method is being adopted by most of the people in India and maybe you also fall in the same category, well I will tell you that way. If you do not know, we give attention if there is some important information. So just listen carefully, if you want to pay zero tax, then you will have to reduce your income to zero. You will not have income, and you will not have to pay tax. Because I feel very bad to say that we have a population of more than 133 crore people. But out of these 133 crores people, think how many people would have filed the return of tax Right now I am not even talking about giving, I'm talking about filing ITR. Think about it, there are not even one and a half crore people.
There are 1.5 crore people who file their ITR and most of them are the ones who file Nil returns who did not pay taxes because they do not show their income. When there is no income, you do not have to pay tax, then you are thinking this is a very easy way But this is a very difficult method because these 1.5 crore people are running this country of 133 crore people, our government runs on tax money. If you do not give tax, then the government will have to take a loan because you must have heard that ministers give speeches that they will make electricity and water for free, they will build roads and everything for free, Where is all the money coming from? That money is not coming from their pocket, either you are giving tax or the government is taking loans in your name and the name of your children or in the name of their children too Minister doesn't spend anything out of his pocket.
Remember this, all money comes out of your taxes, and when that money is going to the government, the people you have chosen by vote, they are using that money. They are doing it right or wrong you better understand. But let me tell you, at present, the government has a debt of thousands of crores of rupees. You and I and our children and their children will have to reduce this debt by paying taxes in the coming time, or we will have to end it but it will not happen. Because in India, people need everything for free. These 133 crore people do not care about tax. They want that they just keep getting it and the government keeps giving. As long as you are thinking this, then India is not going to move forward, but if you people are watching this video, then you want to know how you can reduce the tax to zero. I will tell you definitely, this is my work.
This is jokes apart, the fact that to make your income zero, it is a very useless method to make your income zero, it is the worst way that if there is no income, then no need to pay tax. But if you guys are watching this video then I am assuming that you are getting regular income. You are concerned, How much income tax will have to be paid? And how you can save income tax, and is any way by which a lot of tax can be saved. The answer is yes, in this video I am genuinely going to tell you so that way you can legally save tax up to the income of 75 crores.
You will say that sir you are saying that there will be no income and zero tax and on the other hand you are saying that if there is income up to 75 crores then no tax will have to be paid. I will tell you to step by step, watch this video till the end. This video will be very interesting because there are many such things which I will tell you from my personal experiences. Also, because I want you to cover all the things in this video then this video might be a little lengthy. But you will get a lot of interest in this video. Now when we write income tax, some people do not like this word at all, income tax. I say that the word itself is wrong. This income tax is for those people who are getting income from salary, so if you are salaried then this word is fine but for those who do business or do profession, then income tax is nothing for businessmen.
Tax is on profit, you can say profit tax. Why I am saying this, understand this. Let's understand with an example, suppose there are two people one is ram and the other is Shyam. Ram is salaried, and Ram earns one crore rupees per year, he gets a salary of one crore rupees from the company and there, Shyam is doing business. So Shyam also earns money from business and for example, he earns 10000000 rupees also. Now here you guys will see. If Ram's salary is one crore, then I will tell you. You must have heard that you will have to pay zero tax up to the income of eighteen lakh, I will also tell you. So think that ram is saving tax up to the income of eighteen lakh lakhs, then he will have to pay tax above the income of eighteen lakh, according to his tax slab and we will tell you about tax slab, you will have to pay the surcharge and also cess. So here ram cannot save his money, but Shyam can save it and I tell you how he can save.
Let's assume that both Ram and Shyam are maintaining a similar lifestyle, where Ram and Shyam go on the same jogging and also go on similar trips. Both travel in business class and both stay in five-star hotels. At this time we assume that Shyam and Ram are also going to Five Star for a business meeting and Ram is also going, so Ram can take some reimbursement from the company. But Shyam is maintaining a very good lifestyle. He is Buying a phone and also buying a laptop. Whatever expenses he is doing, if he is doing it for his business, then let's assume that whatever expenses he is doing for the business, will reduce from his income. Income minus expenses is your profit, and businessmen have to pay taxes on profit and not on income, but here you can say that Ram is doing his expenses, if he is also making similar expenses, he cannot claim everything and because he cannot claim then he will have to pay tax. So the salaried people here will understand it carefully. You guys have to pay tax on your entire income.
So you pay the taxes first, then you can do your expenses. Listening to this thing again, you first give tax and you do expenses later. This is the rule of income taxes, The businessman first, do expenses later he pays income tax. So let's assume here that Shyam spends 90 lakhs out of one crore. Then he will pay tax only on ten lakh rupees so he will have to pay tax on one crore. So there will be a huge difference in the tax amount. Are You Getting it, alright? The second thing that comes to mind: why do we pay tax? Many people in India do pay taxes.
They show less income. The biggest benefit of paying tax is that, your capital. And why capital is necessary When you file an income tax return, capital means the money that you have after paying tax, the money on which you have given tax or you have shown it in your book, it is your capital, then this capital is needed because earlier in India people used to work in Raw, Meaning the transaction used to be in cash, but now it has reduced to a great extent. Till the time GST has come and demonetization has happened, People have reduced their raw transactions and have become very focused at this time on how to increase their capital and you should also be focused on increasing the capital because if tomorrow you have to make your assets, understand this if you have to make your assets, you want to buy the property and you have to buy shares and suppose if you want to buy a car for yourself. All this money comes to you from the capital, I am giving you the example and understand In today's date for those who do not have income, I told you that out of 133 crore people in India, only 1.5 crore people are filing income tax.
That means people don't care. People think that whatever the rate is, they will get it as much as people, just like people think that Rolls Royce is worth 5 crores then they will get it for 5 crores, then you are thinking wrong. If Rolls Royce costs five crores, then you will not get it for five crores, this money will come from your capital and the capital is on which you have paid tax. This means that if you have an income of 9 crores, on which you will first give tax on income of about four crores to the government. After that, you will have a capital of five crores and after that, you buy a Rolls Royce or ferrari Meaning the price of Rolls Royce is not 50000000, its price is ₹ 90000000, I removed the tax of four crore taxes because you think that the government does not take so much tax but the government took.
The more income you earn, the more you probably have to pay tax. Your tax slab may be the same, as you think it is 30%. But surcharges maybe 10%, 15% and 25%. And those people whose income is more than 5 crores, have to pay a surcharge of 37% So most of the people do not need to panic, but those people have to think definitely, India the government is taking a lot of tax because, in India, people have a habit of free When you need everything for free.
When you say that you want everything for free, where will that money come from? Somebody has to pay because there is nothing free in this world. On today's date, if you think that langar is being available in the Gurudwara for free, then you are wrong. Somebody has donated, somebody has given money, then they are getting a meal. This whole world runs on money. You have to believe. I want that you have a positive impact on your mind, that you focus on it and you do business and you increase your income and you develop yourself by which your income can increase and you also can pay tax. the government is running on it and our country will progress. Otherwise, you also know what happened with Greece. You already know, the debt on the country increased so much that ultimately Greece went into crisis. if you people are thinking from the government that you want everything for free, So keep one thing in mind. You are saying in your mind that sell the country because from where will everything come for free? You will be a burden on people's minds.
You know that when people start earning more money inside India, then they leave the country. This is the truth. You won't believe it, But it is a fact that when people start earning more money then they leave the country because they think that the Indian government will suck us and the government will keep taking money from us and it will give it to those people who want everything for free. Ultimately the country is getting worse. So this is just a game of mindset, maybe you will have a positive mindset. Let's move forward, so you understand that when you give tax, you have capital and this is required. And if today you are giving tax, then what are you making your capital, tomorrow if you want a loan, If you want the property, and you want the loan you have to show ITR if you don't have an ITR, or it is Nil, then you won't get it.
You will not get those things that you want in life if you will not pay taxes, so let's move forward. We talked about tax slabs, so at this time there are two tax slabs inside India. You can choose from them. When you have to fill your ITR you want to file it according to the new tax slab or old tax slab, let's understand this. If your income is zero to 2.5 lakhs, or your income is up to 2.5 lakh, then no tax is made, the government says that if you are earning 2.5 lakhs, then what will you give us. Keep that for yourself, then you do not have to pay tax, it is Nil tax. Let's move forward, if you have an income of 2.5 lakh to 500000, then according to the old tax slab, you had to pay Rs 12500, meaning 5%, but you get a rebate on it and according to the new tax slab, that 12500 gets adjusted automatically. Meaning you don't want to give any tax, then it is zero tax. If your income is up to ₹ 500000, then it is a matter of great happiness.
You don't want to pay taxes, let's move forward. Let's understand according to the new tax slab and old tax slab, your income is too 5 lakh to 10 lakh then according to the old tax slab you have to give 20% tax and if you have income above rupees 10 lakh then you will have to pay 30% tax, you will come under this tax slab. There is no tax on zero to 2.5 per cent, 5% tax on 2.5 lakh to 5 lakh and 20% tax on income from 5 lakh to 10 lakh and whatever income above 10 lakh, there will be 30% tax on it. People thought only 30%, but it is wrong, I also thought then found out later when I sat with my CA last year and now also time has come, To file ITR, you will file ITR, there is also cess of 4% on ITR, This is your health and education cess and your surcharge also levied. Those who have more income will know, but those who do not have much income, will not know.The surcharge is levied, when your income is above 50 lakhs.
When your income is above 50 lakhs, then you will have to pay an additional surcharge If your income is more than one crore, then there will be an additional surcharge on it, then it happens like this. If it is above two crores it will be different and if it is above 5 crores then it will be different, then I told you that the highest surcharge is 37%, it depends on your income. But it doesn't matter for most people, so do not worry about it, because most of the people do not have that much income. But I want your income to increase. Anyways, there are some different rules according to the new tax slabs. When we talk about 5 lakh to 7.5 lakh, then you will have to pay 10% tax, and you will have to pay 15% tax on income between 7.5 lakh to 10 lakh, and you will have to pay 20% tax if your income is in between 10 lakh to 12.5 lakhs and you will have to pay 25% of your income is between 12.5 lakh to 15 lakh, and if your income is more than 15 lakhs then you have to pay a tax of 30%.
Now if you are salaried then I have said that you can save your tax up to eighteen lakhs, and how can you save your tax legally you have to see your salary structure. So talk to your employer and talk to your HR, then you can make some changes and if they will make changes, you will save your tax and I will tell you how you can save tax, let's assume that you get a salary of one lakh, then that salary of one lakh and if we are talking about 18 lakh, then if you get salary up to one and a half lakh per month, you will get only one and a half lakh from the company.
The company will take that expense on that one and a half lakh and It will be reduced from income because the company has to pay tax on profit also, then the company does not mind but you will make a difference and then you will save a little bit of your tax. How will you save, you will redefine your salary a bit. For example, I said, if you have a salary of one lakh, then you don't take the whole one lakh rupees.
Tell your HR to show your basic salary of 50%, if you will show your salary of 50% then if you have a salary of one lakh then show 50,000. You will get the whole money from the company. If you live on rent, you can take HRA from the company. HRA means home rent allowance if you take home rent allowance, then you will get expenses to benefit when you file income tax benefit, you will not have to pay income tax.
LTA is Leave Travel Allowance, you travel times for holidays. While travelling you can save that expense when you travel and travel economy class. You will have to submit the bill for that expense. When you file ITR, you will not be taxed on the amount you have spent. Similarly, if you travel you can take conveyance allowance from the company.
You can take reimbursement, in a way when you talked on mobile at home, you were doing work from home. If you paid for WiFi, then after that you have to give slips and you get reimbursement. There is an education allowance, but it is not much. This is 1200 rupees for one child and if you have Childers up to two, but in this let me tell you one thing that people have a little confusion about it. 1200 rupees is available for a child. You can take a deduction of up to 2400 a year for two children. Here, understand this thing if husband and wife, because children belong to both husband-wife and husband-wife both file ITR and if they have more than two children, then two is enough but if you have three or four children then the husband can take the education allowance for two children and wife can take it for two children, then some people would not know this but I have told you.
Now let's talk about hostel allowance, you can take it ₹300 per month per child and if you have two children then you can ₹ 600 months * 12 Then you can take up to ₹ 7200 hostel allowance and get a meal coupon. A meal coupon here means that you eat food daily. If you are working for a company, then you eat food daily or you can also get meal coupons for ₹50 per day for 26 days in one month and you can also calculate according to per year That whatever your expenses are being incurred here, then when you will file ITR, you do not have to pay tax on that expenditure.
You can take EPF, Employer Provident Fund, whichever is your PF here and whichever is 12 per cent of your basic salary, the tax will not be levied on it and the National Pension Scheme, which will show our basic like if you show fifty thousand then you can take up to 10% deduction under National Pension Scheme, if you are investing in it then you don't have to pay tax on it plus there is another advantage of the National Pension Scheme is that you get an additional exemption of 50000 on your income tax.
Whatever you invest under the National Pension Scheme, it goes under section 80C. Now there are many tax-saving instruments inside 80C like ELSS, you can invest in mutual funds You can also take term insurance for yourself, This too will come under 80C, If you take medical insurance then it comes under section 80d and if you are taking medical insurance for yourself then you can save here ₹25000 and you are saving this 25000, which you are paying the premium you are saving it. If you also take medical insurance for your parents, then you pay a premium for it, If your parents are senior citizens then you can save an additional 50000 here, then you can save in 80D from 25000 to 75000, you are getting a discount of 1.5 lakh rupees in 80C, If you are investing under the National Pension Scheme, then you are getting an additional exemption of 50000.
On average, a common man can save tax up to 78000, If he plans his investment properly. If I tell you a one-stop solution, I won't only tell you, I would also like to show you, when you go to the ETMoney app, you will click on the menu and you will see here in writing that it saves tax up too 78000. Just click on it, and it will show you how much tax you have already saved and how much you have to save, so when you click on get started here you will be asked for some basic information about whether you are salaried or you are self Employed. Suppose You clicked that you are salaried, Now the next question will come in which range your salary comes from, you can choose here, as an example your salary is between 10 lakh to 12.5 lakh, then you will click here and continue.
Now here you will be asked more basic information like your age and you can tell it here and for example, I put here and here I asked you whether you have dependents or not, then you said that you have dependents and will continue. After that, where have you already invested in this financial year, it will be visible here, then you can tell that you have taken life insurance and for how much you have taken and if not taken, then here you can also skip it. So here you skip it and it will tell you how much tax you can save here and accordingly, you can invest in tax saving instruments and you can start saving now, here you can save approx 58000 approx, which means you can save. You can save it, here it is written that you can save 38,477 under 80C and 9368 under 80D and you can save 10,400 rupees under 80CCD, you will click on start saving now, and it will tell you what to do next. As you are reading, ELSS, ELSS stands for Equity Linked Savings Schemes, in this way, you are investing in mutual funds, But it has a lock-in of 3 years.
Now when you invest in ELSS you can save approximately 36000 under section 80C, We all need Term life insurance When you take term life insurance, then you are getting the benefit of 2000 something under section 80c, and if you take health insurance, then there is a deduction under section 80D of approximately 9000. And as I told you, there is an additional benefit in the national pension scheme, so you can save 10,400 rupees approximately. This all is done instantly without any paperwork, it is Fast, It is easy and hundred per cent paperless, so you can do your tax planning in a very easy way on the same platform, so I will give you the link to the ETMoney app in the description and the comment box.
So that you can check out where you need to plan your investments and how to save tax in sections 8C and 80D. Look, we don't have to give extra money. If we are investing for ourselves then we should get benefit in that and you are getting that benefit through ETmoney. The things I told you, I told you one thing in the beginning that you can save tax up to 75 crores and how will you save that, I'll tell you. Nowadays people are launching their start-ups inside India. When you register your company as a private limited company, you start calling it a startup. But have got your start-up certificate from the government of India? If you have not taken it, then take it. I am saying this because once you register your startup with the government.
When you get your certificate then that you can file for tax exemption then you are doing your business, many people do business and many people are running their start-up and when you are running your business, then if you apply for tax exemption certified in 1 year if your turnover is not up to 25 crores I talk about three years you do not have to pay any tax on income up to ₹ 75000000 legally. So if you have applied for tax exemption once for 3 consecutive years here and if you get a tax exemption certificate, then you will not have to pay any tax up to seventy-five crore, It's amazing but a lot of people are doing startups and they don't know about it.
See, the government wants to support you. The government wants more entrepreneurs inside India. This is proof in front of you, Government wants to support you, But if you do not do anything, then the government will also not be able to do anything, then what are you going to do and in what way are you going to save tax. This is all your own decision, it is my work to guide you. You can save your tax. For it, you can do a lot of things so there are some more basic things that I want to tell you See if you are doing business, then you can minus your expenses from your income, this will not minus like this, for this, you need an invoice. You need bills for it, I'll tell you what happened to me. I said that if I will tell you from my personal experiences, l remember it. When we used to file our ITR, people did not know.
People file it for Nill and pay very little tax. But when the income increased more, there was a significant tax amount for me that I have to give so much tax. When I talked to my chartered accountant, he said that it is okay you have to pay less tax on your income, so you bring the bills of expenses you have done, which means If you have filled petrol then the bill if you visited the restaurant and if you have business meetings, bring that bills and if you have any seminars and in that, you have paid to hotels, then you brought this bill to me, then whatever bills you have, I will minus that expenses from and you will have to pay taxes on bills.
Earlier I did not keep my bills with care, Now I have started taking great care. If I am doing any expense for business, then I keep my bills very well. You will also keep that, one more thing let me tell you. There will be many young people. You have to build your capital and people ignore this and they don't know but you need to know. Look, you focus on making the capital definitely, but when you guys get married. There is marriage in everyone's house, if it is done for you, then if someone else marriage is happening in your house, you will guide them.
When you get married, you get this opportunity once in a lifetime that whatever gifts you get inside the marriage, you get jewellery and you get cash, there is no tax on it and everyone gets this opportunity but people do not show in their ITR. But I did it, Whatever omen comes to you, everyone gives the envelopes to the new bridegroom and everyone gives cash to the bride and groom, in everyone house. You Show that cash, there will be no tax on it, then if you have got any jewelry and that jewelry is up to 500000 or 1000000 or 2000000. Whatever jewelry you get, You can show that what you have received and there will be no tax on it and will automatically become your capital. Whatever the value is, you can get its valuation by jeweler and whatever the valuation of jewelry is, it is being added to your capital. So it is a good way because you get the opportunity once in life.
You can also talk to your CA about the cash you are receiving plus there are many more methods That I will tell you in short. Because maybe this video has become too long. You can divide your income. For example, your company income is 50 lakh rupees, then you will have to pay tax on this But if the company you have, and your family members are involved in it, for example, your father and your mother are involved in it and your wife and your brother and your sister are involved then the members of the house are involved, then what can you do, you just understand this thing. What can you do? You can tie the salary of all of them with the company. I am not just talking about income I am saying that this is the net profit of the company is 50,000 you have done business expenditure and you know the business expenses despite that there is a tax on fifty lakh, but how you can make it legally Zero.
If you have taken a salary of ten lakh in your name, let's say you have divided the salary in the name of your family members, you paid the salary to everyone from the company. Legally these people will have to pay tax here according to their tax bracket and you can save tax up to Rs 1000000. after that you have saved tax under 80C or 80D. So you can minimise it very much and if there are many people in the house then it can be up to zero, so you can also save money by dividing it, and there is another way that when you have made your investment in the office, whether you have bought an office or you have bought a car or you have purchased any machinery for your business.
On of all this, you get depreciation and depreciation as you see that if you are getting depreciation, then it is an expense for you. Income – Expenses, then your expense for depreciation has increased here and the debt that will be left, you will give tax on that. Then again you reduce your tax, So there are a lot more ways, I Think This video will be very long if I Talk about Income Tax talked about GST. So you can save your taxes for sure and I have told you a lot of ways for that today. If you want us to create another video on it because there are practically more ways so that we are managing our taxes. We don't call it to save tax, this is the wrong word.
We call it tax management, then you can manage your tax. There is no way to save. Then the same way is that you make your income zero or you have an exemption and many people inside India have Farms or you Belong from Farming Business and you have Fishing Business then the income that comes from Agriculture and Fishing business, so there is no tax on all the income from agriculture inside India, there is zero tax on it, so you can save tax on it and you can increase the capital. So I hope you must have learned a lot from this video. Again you can save tax up to 78000, I will give the link of ETMoney in the description and comment box. How did you like this video, you will tell in the description and comment box and if you again want us to talk about income tax because this is a huge term, so we can talk about it many times, so if you want us to make the video again, then you can comment.
If you have any questions then you can ask in the comments. You can share so that people also get awareness and if you are watching this video on YouTube then subscribe to it and click on the Bell icon if you are watching this video on Facebook then you can follow us I will see you in the next video hope this video is valuable so we will meet in the next video and till the time you go self-made.