'How to save 100% income tax': Udipi analyst's three-step formula goes viral. Watch

A novel way to save taxes post Budget 2024 has gone viral. A video, shared by a Karnataka resident, suggests that salaried individuals in India can potentially save 100% of their income tax by growing and selling grass to their employers. 

Shrinidhi Handa, an analyst and travel blogger from Udupi, Karnataka, is behind this unconventional proposal. His satirical advice outlines a simple three-step process: first, grow grass at home; second, tell your HR you don’t want any salary; third, have your company buy the grass from you at the equivalent of your salary. 

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Handa says that this income from selling agricultural produce is not taxable, effectively reducing one's taxable salary to zero.

“Now what happens, your income from salary becomes zero and all you have is income from selling agricultural produce which is not taxable in India. This way, you can save 100 per cent on income tax. No need to worry about TDS or investment.”

This hack has sparked a mix of disbelief and curiosity. Some viewers suspect a catch, while others humorously predict government intervention to close this loophole. The concept highlights ongoing debates about India's tax system and the lengths people will go to navigate it.

Union Finance Minister Nirmala Sitharaman said changes in tax slabs in her Budget are designed to benefit the middle class, including an increase in the standard deduction from Rs 50,000 to Rs 75,000. These adjustments aim to provide financial relief to salaried individuals and ensure even high-income earners benefit from tax reductions on incomes up to Rs 7 lakh.

Sitharaman also announced subsidized education loans up to Rs 10 lakh and affordable housing rebates to further aid the middle class. By tweaking tax slabs and offering various subsidies, the government aims to support the financial well-being of middle-income families.