Is It True You Can Earn Up to 500,000 Tax-Free? Seeking Clarity and Details

Hi all,

It is said that a salary up to 500,000 can be made tax-free. Can you provide certain details regarding the same?

With regards,
Swarali

Hi all,

I know all of you are quite busy as it is the first day of the week. But I would like to know if it is possible to give a tax-free salary up to 500,000.

With regards,
Swarali

What is a tax-free salary? Please note the terminology of income tax clearly. An initial exemption of Rs. 1 lakh is given to all individuals (separate slab for working women and senior citizens). Furthermore, a deduction with respect to housing loan interest paid up to 1.5 lakhs is available. Investment under 80C of 1 lakh is eligible for exemption. Additionally, HRA to the permissible extent, medical insurance of Rs. 15k per annum, and medical reimbursement of 15k per annum are eligible. Conveyance allowance is exempt up to Rs. 9600 per annum.

Of course, companies can pay tax-free salary without deducting tax. However, they have to pay tax on their own. I have never heard about a tax-free salary of up to 5 lakhs so far. If something like that exists, it would be sweet news! :D

Regards, Vishwanath

Hello Sir,

Thank you for your response. I might have used the wrong terminology for it, and I apologize. Could you please provide me with the tax exemption slabs for working women and senior citizens?

With regards,
Swarali

Hi All,

I would like to add to what Vishwanath has stated; the following things will also be considered:

1. LTA approximately one basic salary.
2. Food Coupons up to Rs. 15,000 per annum.

Shrinath

Hello Ma'am,

Regarding income tax information, the salary structure is as follows:
- For working men: 1,10,000/-
- For working women: 1,35,000/-

Income tax rates are as follows:
- 1,35,000 to 1,50,000: 10%
- 1,50,000 to 2,50,000: 20%
- 2,50,000 and above: 30%

For any further details, please contact me at ramkondapalli@rediffmail.com.

Goodbye,
Ram.

Hi,

Please find enclosed herewith the Income Tax slab for Male, Female, & Senior Citizen. I hope it will be helpful to you.

Regards,

VIKAS JAIN
ERP Functional Consultant - HRMS

Hi Swarali,

What you heard as tax up to 500,000 is nil is partially right. There were reports that in the near future, tax slabs are going to change. The new tax slabs will be as follows:

- Up to 150,000: no tax
- From 150,001 to 250,000: 10%
- From 250,001 to 500,000: 20%
- Above 500,000: 30%

You must have heard something like this, and you may have misunderstood it as there is no tax up to 500,000.

Thanks & Regards,
Nishanth