How to Save Tax for a Salary of 20 Lakhs?

You can pay zero tax on a salary of 15 lakhs, provided you have invested in tax savings options and claim applicable deductions and exemptions. Under the old regime, your net tax payable can be zero if you claim exemptions and invest in tax-saving schemes. In case you are following the new tax regime for FY 20-21, FY 21-22 & FY 22-23 the net tax payable amount will be INR 3,37,500. For FY 23-24 onwards, the net tax payable will be INR 2,85,000 (from the above example).

Claiming tax deductions and investing in tax-saving instruments will help reduce your tax liability to zero. For income up to 10 lakhs, you must be taking maximum advantage of available deductions and exemptions to have a net tax payable of zero. 

Yes, with good tax planning, it is possible to save 100% on tax. To save on tax, you need to invest in tax saving options and also claim for all applicable exemptions. However, if you are in the higher tax bracket, it is inevitable to pay taxes. 

As per the old regime, income up to INR 2,50,000 is tax free. From Budget 2023, the limit has been increased to INR 3,00,000.