Viral tax claims, tested against the statute

• Partly true“You pay zero tax up to ₹12 lakh salary”
• Partly true“Open an HUF and get a second tax-free slab”
• Legit“Pay rent to your parents and claim HRA”
• Trap“Buy the car in your company's name and write it all off”
• Disallowed“Set off your F&O losses against salary and get a TDS refund”
• Disallowed“Show your crypto losses to reduce your taxable income”
• Trap“Move to Dubai and pay zero tax”
• Partly true“44ADA means 50% of your income is tax-free”
• Trap“Gift money to your spouse and invest in their name”
• Partly trueStale numbers“Equity LTCG up to ₹1 lakh is tax-free”
• Trap“YouTubers and influencers can declare just 40% of income as profit under section 44ADA and pay minimal tax.”
• Disallowed“TDS was already deducted from my salary and FD interest, so I do not need to file an ITR.”
• Trap“Property received from parents on inheritance is completely tax-free, and when I sell it there is almost no tax because I got it free.”
• Partly true“Submit Form 15G/15H to the bank and your FD interest becomes completely tax-free.”
• Legit“Gifts up to Rs 50,000 from non-relatives in a year are completely tax-free.”
• Legit“Up to Rs 10,000 of savings account interest is tax-free for everyone, and senior citizens get Rs 50,000 free on all interest.”
• DisallowedStale numbers“Section 80EEB provides a deduction of Rs 1.5 lakh on interest paid on an electric vehicle loan taken by an individual. This deduction remains available for all EV loans, including those sanctioned after 31 March 2023.”
• Trap“Working remotely as a freelancer while on a tourist visa in India is tax-free because tourist visa holders are not taxed on foreign income.”
• Partly true“Donations to registered political parties under Section 80GGC are deductible at 100%, and cash donations are permitted; a donation-plus-cashback arrangement is a legitimate way to route funds and save tax.”
• Illegal“Running personal expenses through a trust or NGO registered under 12A/80G is a legitimate tax-saving strategy because charitable trusts are exempt from income tax.”
• Partly true“Gifting cryptocurrency to a relative is completely tax-free, and later selling it also attracts no tax because the gift exemption under Section 56(2)(x) covers the entire transaction.”
• Partly true“Under Section 44ADA, a professional can declare only 50% of gross receipts as income, and the remaining 50% is completely tax-free. This applies to all self-employed individuals, including freelancers of every kind, with no ceiling.”
• Legit“Any amount of cash received as a wedding gift is completely tax-free — the ₹50,000 limit does not apply to weddings.”
• Trap“Convert to LLP and pay zero tax — profits distributed to partners are tax-free in their hands.”
• Illegal“NRE fixed deposit interest is permanently tax-free — once tax-free, always tax-free.”
• Partly true“ULIP maturity proceeds are completely tax-free under Section 10(10D) — ULIPs are the best tax-free investment.”
• Legit“Startup ESOPs have zero tax at vesting — you only pay when you sell.”
• Legit“You can claim ₹1 lakh deduction under Section 80D by combining your premiums and parents' premiums.”
• Partly true“Both husband and wife can each claim ₹2 lakh interest deduction on a joint home loan — total ₹4 lakh!”
• Legit“Under Section 44AD, you can show just 6% of your turnover as income and pay zero tax if it's below ₹7 lakh.”
• Illegal“Farmers pay zero tax — route your income through agriculture and it's all exempt.”

As of 2026-08-09, FY 2026-27 law. Reviewed by Harun Raaj & Associates, Chartered Accountants.