How To Save Income Tax? (Best solution)

Tax-saving strategies under Sections 80C, 80D, and 80EE are recommended.

  1. Make a Rs 1.5 lakh investment under Section 80C in order to lower your taxable income. Purchase medical insurance
  2. the maximum deduction permitted is Rs. Under Section 80EE, you can claim a deduction of up to Rs 50,000 on home loan interest.

How can I reduce my income tax?

A list of common investment choices to reduce your taxable income under Section 80C is provided below.

  1. The Public Provident Fund
  2. the National Pension Scheme
  3. the premium paid for a life insurance policy
  4. the National Savings Certificate
  5. the Equity Linked Savings Scheme
  6. the main amount of a home loan
  7. Sukanya Samariddhi account with a five-year fixed deposit

How can I save maximum tax on my salary?

Reduce your income tax liability on your salary.

  1. Deductions under Section 80C, Section 80CCC, and Section 80CCD. Citizens of India can save money on taxes by taking advantage of the provisions of these three sections.
  2. Costs of Medical Care.
  3. Loan for a house.
  4. Loan for Educational Purposes.
  5. Shares and mutual funds are two types of investments.
  6. Capital Gains on Long-Term Investments Purchase and sale of equity interests.
  7. Donations.
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Can I save tax more than 1.5 lakh?

If both the individual taxpayer and the parent are over the age of 60, a deduction of up to Rs 1 lakh can be claimed. In addition, any payment made for preventative health check-ups up to Rs 5,000 is eligible for a tax deduction, provided that the payment falls within the total amount.

How can I save tax on 7 lakhs?

If you receive a salary of up to Rs. 7.75 lakh per annum, here’s how you may avoid paying any tax.

  1. The following are the highlights: People earning up to Rs. 5 lakh are no longer need to pay tax. Salaried persons earning up to Rs. 7.75 lakh per annum are also exempt from paying any tax. Invest completely in Sections 80C, 80D, 80CCD(1B), and 80TTA in order to lower taxable income to Rs. 5 lakh.

What income is tax free?

Individuals with a net taxable income of less than or equal to Rs 5 lakh would be entitled for a tax refund under Section 87A, which means that their tax burden will be zero under both the new and old/existing tax regimes, if they qualify. The basic exemption limit for non-resident Indians (NRIs) is Rs 2.5 lakh, regardless of their age.

How can I save tax if I earn 15 lakh?

To begin with, you can reduce your taxable income by up to Rs 1.5 lakh (Section 80C, 80CCC, 80CCD)

  1. Retirement plans from life insurance companies, such as unit-linked insurance plans (ULIPs), pension or annuity plans from life insurance companies, public provident fund (PPF), and employee provident fund (EPF)
  2. Senior Citizen Savings Scheme
  3. New Pension Scheme Tier-I Account
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How much tax do I pay on 50 lakhs?

Customers with income between Rs 50 lakh and Rs 1 crore continue to pay a 10% surcharge, while those with income between Rs 1 crore and Rs 2 crore pay a 15% surcharge, those between Rs 2 crore and Rs 5 crore pay a 25% surcharge, and those with income exceeding Rs 5 crore pay a 37 percent surcharge.

How can I save tax on 8 lakhs?

Income tax saving tips: These ten strategies will help you save up to Rs 8 lakh in income taxes.

  1. Income Tax Deduction on Home Loan Interest.
  2. Recovery of Home Loan Principal Amount (if any).
  3. LIC premium
  4. mutual funds
  5. pension schemes
  6. Central Government Pension Scheme.
  7. Health Insurance Premium.
  8. Medical and maintenance expenditures of dependents who are physically or mentally handicapped.

Is 80D included in 1.5 lakh?

Sections 80D and 80C of the Code of Civil Procedure In India, Section 80C allows for deductions of up to Rs. 1.5 lakhs per year, whilst Section 80D allows for deductions of up to Rs. 65,000 per year, subject to certain restrictions.

What is limit of income tax in India?

5,000,001 to 7,50,000 rupees Twelve thousand five hundred and fifty dollars plus 10 percent of total revenue in excess of five hundred thousand dollars 12,500 plus 20 percent of total income in excess of 5,00,000 is the penalty. Approximately $7,50,001 to $10,00,000. Amount: 37500 plus 15 percent of total revenue in excess of 750,000.

What is hand salary?

The take-home pay, also known as the in-hand salary, is the amount of money that an employee receives after taxes and other deductions have been deducted. It is important to understand that the difference between gross and net compensation refers to the portion of the salary that includes deductions for income tax, professional tax, and other business policy deductions that have been removed from the gross salary.

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What is CTC salary?

The cost to the business, or CTC as it is more often known, is the expense incurred by a firm when it hires a new employee. CTC is comprised of a variety of additional components, including House Rent Allowance (HRA), Provident Fund (PF), and Medical Insurance, among other benefits, which are added to the base income.

How can I save tax on 6.5 lakh salary?

You may take advantage of these deductions by investing in any of the following instruments:

  1. Pension Fund (EPF) investments
  2. Public Provident Fund (PPF) investments
  3. Equity Linked Savings Scheme (ELSS)
  4. Tax Saving Fixed Deposits
  5. Sukanya Samriddhi Yojana
  6. National Saving Certificate (NSC)
  7. Term Life Insurance Premium

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