Income Tax Calculator: If your salary is ten lakh rupees, you will not have to pay any tax. Do you plan and calculate like this?
You're probably aware that the more money you earn, the more tax you'll have to pay. If you pay taxes as well, this is great news for you. Citizens earning more than ten lakhs rupees must pay the same amount of tax. If you want to save money on taxes, you must plan accordingly, thus today we will show you how to save money on taxes. If your salary is between 10.5 lakhs and 10.5 lakhs, you will not have to pay any tax.
If your salary exceeds ten lakhs rupees, you won't have to pay any tax
If you're wondering if this is possible, the answer is yes. To do this, the citizen must budget his or her savings and expenses. So that tax can be saved and you do not have to pay even a single rupee in tax.
Assume your annual pay is 10 lakh 50 thousand rupees and you are under the age of 60, putting you in the 30% tax bracket.
* So, first, deduct 50 thousand rupees as a normal deduction (10,50,000-50,000 = 10,00,000 rupees).
* After then, you can save 1.5 rupees under section 80C of the Income Tax Act. Through investments in EPF, PPF, ELSS, NSC, and tuition fees for two children (10,00,000-1,50,000 = Rs.8,50,000), you will be able to earn a tax exemption of Rs 1.5 lakh.
* Now, if you deposit 50 thousand rupees in NPS every year, you will be eligible for a tax deduction under Section 80CCD (1B) of the Income Tax Act (8,50,000-50,000 = Rs 8,00,000).
* Furthermore, if you have taken out a home loan, you would be entitled to claim a 2 lakh tax exemption under section 24B, i.e. (8,00,000-2,00,000 = Rs.6,00,000).
* You can now claim a tax deduction of Rs 25,000 for health insurance premiums and Rs 50,000 for health insurance purchases for your spouse, children, and yourself under Section 80D of the Income Tax Act. i.e. Rs.5,25,000 (6,00,000-75,000)
* Apart from that, if you donate or donate to any charity, you can get a tax exemption of up to 25 thousand rupees; however, you must provide the donation paperwork in order for this claim to be acceptable. (Rs. 5,00,000 = 5,25,000-25,000)
* You would now be required to pay tax on an income of Rs 5 lakh, which will cost you Rs 12,500 (2.5 * 5%). However, because 12,500 is excluded, you will pay no tax in the 5 lakh bracket. 5 Lakh Total Tax Deduction – 5 Lakh Net Income = 0 Tax)
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