Income Tax: Zero Tax on Income Up to ₹17 Lakh Without Any Chartered Accountant Help! Know How

Introduction:
Yes, you read that right! You can legally pay zero income tax on income up to ₹17 lakh—without hiring a chartered accountant or using any shady tricks. Thanks to India’s income tax structure, deductions, and exemptions, salaried individuals can structure their finances smartly to bring down taxable income to zero. Here's how.

📌 Understanding the Basics

Before diving into the calculations, note that this strategy applies under the Old Tax Regime, which allows for various deductions and exemptions. The New Tax Regime, although simpler, does not offer these benefits.

📊 Income Breakdown Example: How ₹17 Lakh Can Become Tax-Free

Here’s a sample breakdown of how one can reduce taxable income from ₹17 lakh to zero:

💼 Gross Annual Income: ₹17,00,000

Now apply deductions and exemptions available under the Old Regime:

✅ Step-by-Step Deductions

1. Standard Deduction (For Salaried Employees)

• ₹50,000

2. Section 80C (Investments + Expenses)

• Max: ₹1,50,000

• Includes: EPF, PPF, ELSS, LIC premiums, home loan principal, tuition fees, etc.

3. Section 80D (Medical Insurance Premium)

• Self + Family (Below 60): ₹25,000

• Parents (Senior Citizens): ₹50,000

• Total: ₹75,000

4. Section 24(b) (Home Loan Interest)

• Deduction on home loan interest: ₹2,00,000

5. NPS (Section 80CCD(1B))

• Additional deduction: ₹50,000

6. HRA Exemption (If You’re Paying Rent)

• Depending on city, rent, and salary, this can be around ₹2,00,000–₹3,00,000

7. Leave Travel Allowance (LTA)

• If claimed with proof: Around ₹40,000

8. Children’s Education Allowance + Hostel Exemption

• ₹2,400 (education) + ₹7,200 (hostel) = ₹9,600

9. Tax-Free Perquisites

• Food coupons, phone bill reimbursement, etc. (₹20,000–₹40,000 depending on company policy)