Quick Answer: How Can I Save My Tax On 10 Lakhs?

Is 5 lakh tax exemption for everyone?

Abhishek Soni, CEO, tax2win.in, a tax-filing firm says, “As per the proposals of Budget 2019, there will be no tax liability if your taxable income is Rs.

5 lakh or less.

However, ITR filing is still mandatory if your income exceeds the basic exemption limit of Rs.

2.5 Lakh (if age is below 60).”.

Is 2 lakhs a good salary?

Honestly unless it’s through multiple sources of income it makes one more nervous and insecure. A full time job of 2+ lacs a month increases your cost of living and loans or investment. You slowly realize that you would be pauper if you loose your job.

What is in hand salary for 15 lakh package?

General Comparison Chart For Approximate Understanding by CkBandCTC (Yearly)In Hand SalaryA20 lakh1,15,000 per monthB15 lakh95,000 per monthC12 lakh82,000 per monthC10 lakh63,000 per month3 more rows

Can I pay rent to my parents to save tax?

Save tax as a family – By submitting rent receipts and paying it, you will be able to claim exemption on HRA. Your parents can deduct property taxes and also claim 30% standard deduction on the rental income. … In case they do not have any taxable income, you will be able to save significant tax as a family.

How can I save tax on 20 lakhs?

Salary structure is very important to keep taxes low. … Section 80C/80CCC/80CCD (Rs 1,50,000): Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA and NPS. … Section 80CCD(1B) (Rs 50,000): Investment in NPS (Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?)More items…•

Can I show my parents LIC for tax exemption?

LIC Life Insurance Premium Life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. … Insurance premium paid for yourself, your spouse or your children is allowed as deduction under section 80C of Income Tax Act.

How can I save tax on 7 lakhs?

Step 1: You can get a deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. You can do this by investing the entire sum into your PPF, or dividing it between your PPF, EPF, tax-saving mutual funds, and tuition fees paid for your children’s education.

How do I not pay income tax?

How to Reduce Taxable IncomeContribute significant amounts to retirement savings plans.Participate in employer sponsored savings accounts for child care and healthcare.Pay attention to tax credits like the child tax credit and the retirement savings contributions credit.Tax-loss harvest investments.More items…•

What are the exemptions for income tax?

Income Tax Allowances and Deductions Allowed to Salaried IndividualsExemption of House Rent Allowance.Standard Deduction.Leave Travel Allowance (LTA)Mobile reimbursement.Books and periodicals.Food coupons.Section 80C, 80CCC and 80CCD(1)Medical Insurance Deduction (Section 80D)More items…•

What income is not taxable in India?

Taxpayers and Income Tax SlabsIncome RangeTax rateTax to be paidUp to Rs.2,50,0000No taxBetween Rs 2.5 lakhs and Rs 5 lakhs5%5% of your taxable incomeBetween Rs 5 lakhs and Rs 10 lakhs20%Rs 12,500+ 20% of income above Rs 5 lakhsAbove 10 lakhs30%Rs 1,12,500+ 30% of income above Rs 10 lakhs

You are legally allowed to pay rent to your parents, brother, and other relatives provided they own the house. However, to prevent any legal inefficiencies, you should have a signed rental agreement, rent receipts, and must have paid monthly rent to your parents.

How can I save maximum tax on my salary?

In this article, we cover all the major tax deductions under the Income Tax Act:Use up your Rs 1.5 lakh limit under Section 80C. … 2) Contribute to the National Pension System. … 3) Pay Health Insurance Premiums. … 4) Get a deduction on your rent.5) Get a deduction on the interest on your home loan.More items…•

What is maximum tax saving?

Section 80C is a popular tax-saving deduction where you can save up to a maximum of Rs 1.5 lakh per financial year, using certain investments and expenses. The tax saving calculator consists of a formula box, where you enter the total taxable income, and your current investments or expenses under Section 80C.

Can I invest more than 1.5 lakhs in 80c?

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act.

What income is tax free?

As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income up to Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh …

How can I save tax on 15 lakhs?

If you invest up to 1.5 lakh: If you have invested in Public Provident Fund, Employees Provident Fund, Sukanya Samriddhi Scheme, life insurance or health insurance premium, tax-saving fixed deposits from banks or post offices or any other provisions that allow tax exemption to the tune of Rs 1.5 lakh, you would still …

Is 17 lakhs a good salary in India?

This salary range of Rs. 17 LPA for seven years of experience is really much above the median level salary and is good, for someone working in IT services companies. … If you are from a decent college, then no, 17 lakh is more or less fresher or first year salary for most companies these days.

How is tax calculated?

How Income Taxes Are Calculated. First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k). Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income.

Can I deposit 5 lakhs in my account?

Individuals who deposit cash above Rs. 2.5 lakh and senior citizens who deposit cash above Rs. 5 lakh may be scrutinised. Any amount within the specified limit will be excluded from scrutiny considering that the money is from household savings, cash withdrawals, earlier income, and so on.

What is the income tax on a salary of Rs 5 lakhs per annum?

What are the tax slabs in India?Annual IncomeTax RatesUp to INR 2.5 lakhsNILINR 2,50,001 – INR 5 lakhs5% + 4% cess on income taxINR 5,00,001 – INR 10 lakhs20% + 4% cess on income taxAbove INR 10 lakhs30% + 4% cess on income tax

What is HRA salary?

The amount employees receive from the employer as a part of the paid salary is called HRA (House Rent Allowance). HRA offers tax benefits to the employees for the amount paid by them for accommodations every year. … You can avail this exemption only if you live in a rented accommodation.

How much tax do I pay on 10 lakhs?

For income between Rs 5 lakh and Rs 10 lakh, the current slab is 20 per cent and for income above Rs 10 lakh the income tax slab is 30 per cent. As per the new tax slabs, individuals earning Rs 5 lakh to Rs 7.5 lakh will be taxed at 10 per cent and those from Rs 7.5 lakh to Rs 10 lakh would be levied 15 per cent.

What tax will I pay on 5 lakhs?

SynopsisIncomeTax liabilityUp to Rs 2.5 lakh0Between Rs 2.5 lakh and Rs 5 lakh5% of Rs 2.5 lakh = Rs 12,500Income above Rs 5 lakh (Rs 10,000)20% of Rs 10,000 = Rs 2000Total tax liabilityRs 14,5001 more row•Feb 28, 2020

Is 30 lakhs a good salary in India?

Every fresher coming to search for a job mostly gets paid among 4 to 5 lakhs per annum in India except NIT and IIT grads who generally get paid 7 to 8 lakhs per annum. … But after almost 5 to 6 years of experience and with skills a person in India can get 25 lakhs to 30 lakhs per annum.

How much tax should I pay for 7 lakhs?

A 10 per cent tax will be charged on income between Rs 5 and 7.5 lakh, 15 per cent, 20 per cent and 25 per cent on next Rs 2.5 lakh each and 30 per cent on income above Rs 15 lakh.” Currently, annual income up to Rs 2.5 lakh is exempt from income tax.

Is FD tax free?

Interest income from Fixed Deposits is fully taxable. … This Tax is Deducted at Source by the bank at the time they credit the interest to your account, and not when the FD matures. So, if you have a FD for 3 years – banks shall deduct TDS at the end of each year. (See below for more details on TDS on FDs).

Can I deposit 10 lakhs in bank?

If you cash deposit more than Rs. 10 lakhs from your savings bank account – Bank will report to Income Tax authority. If you do fixed deposit more than Rs. 10 lakhs in a financial year – Bank will report to Income Tax authority.

What is the 80c limit for 2020 21?

Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2020-21. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.

How can I save tax if I earn 10 lakhs?

Which regime should a taxpayer with an annual income of Rs. 10 lakhs choose?Standard deduction of Rs. … Deductions up to Rs. … Deductions for health insurance premiums under Section 80D.Deductions on the interest earned from a post office or bank savings account under Section 80TTA.More items…•

How can I save my income tax in 9 lakhs?

Earning Rs 9.5 lakh per annum? Here’s how to pay zero taxHere is how:Exhaust 80C Limit.Claim Interest On Home Loan.Additional Tax Benefit For NPS Contributors.Standard Deduction For Every Salaried Person.Reduce Medical Expenditures And Tax In One Go With Health Insurance.Interest Income Can Play A Role Too.