As soon as March arrives every year, a question trends on social media and YouTube – “How to save income tax?” Hundreds of videos, dozens of formulas and confusion are confused. Buy insurance, invest in ELSS or fill in PPF – is it really easy to save tax? But this time a young tech employee did something different. He asked AI Chatbot Chatgpt directly generative AI instead of Chartered Accountant (CA)-“I work on 1.5 million CTC, please tell me how to save tax in FY 2024-25.”
outcome? Savings more than ₹ 45,000, watch videos without any financial guru, and give money to CA.
Pay structure and initial thinking
The total CTC of this person is ₹ 15,00,000, including:
Original Salary: ₹ 6,00,000
HRA: ₹ 3,00,000
Special allowance: ₹ 3,00,000
Bonus: ₹ 2,00,000
PF by employer: ₹ 72,000
At first glance everything seems right. But AI asked some important questions – “Do you live on rent?”, “How much do you pay?”, “Which city do you live?” – And this is where savings started.
Hra discount
If you live in the metro city and live on rent, then there can be huge discounts in HRA. The calculation that AI did was:
Real HRA: ₹ 3,00,000
50% basic salary (for metro): ₹ 3,00,000
Fare – 10% Basic: ₹ 2,40,000
This means – ₹ 2,40,000 HRA discount and only ₹ 60,000 taxable. Earlier this person was paying tax on ₹ 3 lakh. That is, only this improvement saved thousands.
Full advantage of 80c, 80D, 80g
AI reminded of sections like 80C, 80D and 80G – which we often forget while filling the form. This person found a valid cut of a total of ₹ 1,77,000:
Standard deduction: ₹ 50,000
EPF: ₹ 72,000
Term Insurance: ₹ 20,000
Health Insurance (80D): ₹ 25,000
Donation to NGO (80G): ₹ 10,000
Apart from this, Chatgpt also suggested PPF, ELSS and home loan options that the person can connect with his convenience.
Advice to reorganize bonus
AI suggested reorganizing ₹ 2 lakh bonus annually, so that tax could be saved more:
Holiday travel allowance (LTA)
Fuel and driver spending
Books and skill development expenses
Work from home allowance
Through these options, employees can non-taxable part of their bonus, if the company HR allows it.
Old vs new tax system?
AI compared both tax systems:
Description Old Tax System New Tax system Gross Salary Gross Salary ₹ 15,00,000 ₹ 15,00,000 HRA Discount – ₹ 2,40,000 ❌ Standard Deduction – ₹ 50,000 ✅ 80C (PF+Insurance) – ₹ 92,000 ❌ 80D – ₹ 25,000 ❌ 80g – ₹ 10,000 ₹ 1,37,640 ₹ 1,82,500
Savings of ₹ 44,860 under the old system.
Is this possible for everyone?
According to experts, if your income structure is simple – only salary, some deductions and no business income – then you can make a tax plan yourself. Tax can not only be saved through correct information, digital equipment and timely preparation, but also has self -sufficiency in financial planning.
Tax savings checklist for fY 2024–25
क्या Recurry HRA
का Use EPF, PPF, ELSS in 80C
Do not forget Health Insurance (80D)
क्या Take advantage of donation (80g)
क्या Must compare the old vs new system
Discuss allowances from ✔️ HR
क्या launch tax plan before March
Help from AI but also important
Although AI gave amazing results, it may be necessary in many cases to seek expert advice – especially when your income is complicated (eg: freelancing, rental income, capital gains etc.). This story tells that saving tax is no longer limited to chartered accountants. A common citizen equipped with technology and information can also take a decision on his own today. And if a simple question-“How can I save tax?” – If you can save ₹ 45,000, then imagine how much financial freedom you can get if we pay attention to it throughout the year. Because saving tax is not a magic – just a game of awareness and planning.
