Income Tax Rules: If you are a taxpayer then this news is very important for you. If your income is 10 lakh rupees, then you will not have to pay tax even a single rupee. Today we will tell you how you can save tax. Know full details…
According to the rules of the Income Tax Department, no tax has to be paid on income up to 2.5 lakhs annually. There is a provision of 5 percent tax on income of 2.5 to five lakh rupees, while 20 percent tax has to be paid on annual income of 5-10 lakh rupees. At the same time, there is a 30 percent tax slab on annual income of 10 lakhs and above. If your income is Rs 10 lakh then you do not have to pay tax even a single rupee. Today we will tell you about such a way, by which you can save the entire amount of tax by taking advantage of investment and income tax exemption. For this, you have to balance between Savings and Expenses.
Income tax experts explain this through an example, they say that suppose you earn Rs 10 lakh annually, then in this case you get a standard deduction of Rs 50,000. This brings down your taxable income to Rs 9.5 lakh. Then, in addition to this, you can get up to Rs 1.50 lakh rebate by investing in tax saving schemes (life insurance, sukanya samriddhi yojana, children’s fees etc.) under 80C. By doing this your taxable income comes down to Rs 8 lakh.
According to tax experts, to further reduce this, you can take advantage of NPS. Through this, the taxable income can be reduced by another 50 thousand rupees. Apart from this, you can get a discount of 25 thousand rupees through your health insurance and 25 thousand rupees through your parents’ health insurance. With this your taxable income will now be Rs 7 lakh. Then, if you have taken a home loan, you can avail interest deduction of up to Rs 2 lakh through it. Now your taxable income will be Rs 5 lakh.
According to tax experts, on income up to Rs 5 lakh, the government gives a tax exemption of Rs 12,500 under section 87 (A). This will reduce your taxable income to less than Rs 5 lakh and once that happens you will not have to pay any tax. This income is eligible for full exemption under section 87A.