Question: How can I live tax free India?

How can I legally pay no taxes in India?

Recommended ways of saving taxes under Sec 80C,80D and 80EE

  1. Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income. …
  2. Buy Medical Insurance, maximum deduction allowed is Rs. …
  3. Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.

How long can I stay in India without paying tax?

The positive aspect is that in most cases, NRIs can continue to visit India for up to 181 days in the financial year and even in other cases where the period of stay in India is 120 days up to 181 days (and also for 365 days or more in preceding 4 years) or more or in case of Indian citizens who are not tax residents …

Can India survive without taxes?

India derives less than 15% of their budget from personal income taxes. If the government can cut 15% of their spending, they can simply abolish the income tax and there will be no effect on the budget. This less reliance on personal income tax is what makes abolishing it a very real possibility.

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Is there a way to live without paying taxes?

The truth is, there is no foolproof, permanent, and easy way to live in the United States full-time or a majority of the time without paying US taxes. … At the end of the day, you may not have to live in the United States to get what you want.

What income is tax free?

Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both tax regimes. Rebate under section 87A is not available for NRIs and Hindu Undivided Families (HUF)

Which income of non-resident is taxable in India?

NRI or not, every individual must file a tax return if their income exceeds Rs 2,50,000. But note that NRIs are only taxed for income earned/collected in India. So, Rahul will pay taxes on income earned while in India, and income accrued from FDs and savings account.

How can I get residency in India?

Individual – Residence

  1. physically present in India for a period of 182 days or more in the tax year (182-day rule), or.
  2. physically present in India for a period of 60* days or more during the relevant tax year and 365 days or more in aggregate in four preceding tax years (60-day rule).

How can I become NRI?

Eligibility Criteria for NRI Status

  1. An Indian citizen stays abroad for 183 days or more in one financial year.
  2. An Indian citizen stays in India for less than 365 days in the last four years from the current assessment year and less than 60 days during the year.
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How can I remove income tax?

Once a tax return has been submitted and you have received an acknowledgement number for it, you will not be able to cancel the tax return. If you have made a mistake while filing the return and need to change it, you can correct it and file a revised return. Do note that return filed after due date cannot be revised.

What if India abolished income tax?

If personal income tax is removed, then there will be no scope of any black money from tax evasion of genuine earnings and the entire funds will be available for productive purposes of the economy. This will increase consumption or national savings, investment and growth.

Can India abolish personal taxes?

To make up for a huge revenue shortage caused by IT abolition would not be easy, and a lot of welfare programs could be put temporarily on hold. To manage the revenue shortfall, the government may increase GST rates on commonly consumed goods, making them costlier for the common person.

How can I legally pay zero taxes?

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.

What if I stop paying taxes?

If you continue avoid paying your tax bill, the unpaid amount could come out of future tax refunds if you’re owed any. … The lien could later become a levy, which means the IRS will seize your property to pay your bill. As with failure to file taxes, you can also go to jail for failure to pay taxes.

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Who does not pay taxes in India?

2.5 Lakhs annually (which cover the overwhelming majority of the country) are exempt for paying any income tax. Those earning between Rs. 2.5 Lakhs and 5 Lakhs are subject to 5 per cent tax; those earning between 5 Lakhs and 10 lakhs rupees, 20 percent tax; and those above 10 lakhs, a 30 percent rate.