The Finance Minister has increased the standard deduction by 50 percent along with the change in the tax slab under the New Tax Regime. Now under the new tax regime, you can claim Rs 75,000 instead of Rs 50,000 as standard deduction. Apart from this, now 10 percent tax will have to be paid on income of 7 to 10 lakhs. Earlier, 10 percent tax had to be paid on income of 7 to 9 lakhs.

After the increase in standard deduction, under the New Tax Regime, you will not have to pay a single rupee tax on an income of Rs 7.75 lakh. But if your income is more than this i.e. Rs 10.50 lakh, can you save income tax? The answer is yes, you will not have to pay a single rupee tax on an annual income of Rs 10.50 lakh. If you also want to save income tax, then for this you will have to select the Old Tax Regime.

There will be a direct benefit of Rs 49,400.

In the old tax regime, you can claim many types of exemptions. On the other hand, if you go to the new tax regime, then you will have to pay 15 percent tax on this income. Under this, 15 percent tax has to be paid on income of 10 to 12 lakhs. After standard deduction, the tax on this income becomes Rs 49,400. Let’s know how you can save this tax in the old tax regime?

No tax on income up to Rs 2.50 lakh

Under the old regime of income tax, there was no tax on income up to Rs 2.5 lakh. But here we will tell you how you can avoid income tax liability on income up to Rs 10.5 lakh. That is, you will not have to pay even a single rupee tax on income up to Rs 10.5 lakh. Let’s know how?

Also Read: ITR Filing: Deadline for filing ITR extended to 31 August? Income Tax Department itself told the truth

1. If your annual income is Rs 10.50 lakh, then how can you avoid paying income tax? Here we will tell you the complete calculation of this. On this income, you will first get a discount of Rs 50 thousand under standard deduction. Due to this, your taxable income of Rs 10.50 lakh is reduced to Rs 10 lakh.

2. Now out of the income of Rs 10 lakh, you can claim savings of up to Rs 1.50 lakh under Section 80C of the Income Tax Act. Under Section 80C, you can claim investments made in LIC, PPF, Sukanya Samriddhi children’s tuition fees, mutual funds (ELSS) and EPF. Under this, you can also claim the principal amount of home loan. In this way, your taxable income is reduced to Rs 8 lakh 50 thousand.

3. After this, you can claim Rs 2 lakh under Section 24B of the Income Tax Act. You get this exemption on the interest amount of home loan. After claiming these two lakh rupees, your taxable income is reduced to Rs 6.50 lakh.

4. After this, you can claim medical health insurance up to Rs 25000 under section 80D for tax saving. If your parents are senior citizens, then you can claim Rs 50000 for their health insurance. In this way, if you claim a premium of Rs 75000, then your taxable income will be reduced to Rs 5.75 lakh.

5. Now you can invest Rs 50,000 in National Pension System (NPS) to reduce your tax liability. You can claim this under 80CCD (1B). That means now your taxable income here has come down to Rs 5.25 lakh. You can reduce it even further.

6. After this, if you donate Rs 25,000 to any organization or trust, you will get the benefit under Income Tax Section 80G and your taxable income will be reduced to Rs 5 lakh.

7. On income between Rs 2.50 lakh and Rs 5 lakh, tax of Rs 12,500 is levied at the rate of 5%. But the government gives you a rebate on this. In this way, your tax is reduced to zero rupees.

Let us tell you that under the old tax regime, there is a provision of 5% tax on income of Rs 2.5 lakh to Rs 5 lakh. After this, there is a provision of 20% tax on annual income of Rs 5 to 10 lakh. Apart from this, there is a tax liability of 30% on annual income of Rs 10 lakh and above.

The post Income Tax: You will not have to pay even a single rupee tax on income of 10.5 lakhs first appeared on Rightsofemployees.com.

Income Tax Saving: Often people invest at the last moment to save tax, due to which they are not able to save much tax. But if tax saving planning is done at the beginning of the financial year itself, then you can save lakhs of rupees. Especially your annual income should be Rs 10 lakh. Here some methods are being explained, under which you can save tax worth lakhs of rupees.

The government has fixed the limit of tax exemption up to Rs 7 lakh under the new tax regime, while exemption has been given on annual income up to Rs 5 lakh under the old tax regime. In such a situation, if your income is more than these two tax regimes, then you will have to adopt some methods to save tax. Let us know how you will not have to pay even a single rupee tax on an income of Rs 10 lakh?

How much tax is levied on earnings of Rs 10 lakh?

To save tax on annual income of Rs 10 lakh, you will have to opt for the old tax regime. There are different tax slabs available under the old tax system. Under the old tax regime, the Income Tax Rule says that no tax will have to be paid on annual income up to Rs 2.5 lakh. There is a provision of 5% tax on income of Rs 2.5-5 lakh. Whereas 20% tax is charged on annual income of Rs 5-10 lakh. There is a 30% tax slab on annual income of Rs 10 lakh and above.

You will not have to pay even a single rupee of tax

If your annual income is Rs 10 lakh then you will have to pay 30 percent tax. However, if you want, you will not have to pay even a single rupee. You can save the entire amount of tax by making some investments and taking advantage of deductions.

How can you save tax on Rs 10 lakh income?

A rebate of up to Rs 50 thousand is available as standard deduction. In such a situation, tax will now be charged on Rs 9.50 lakh.
By investing in schemes like PPF, EPF, ELSS, NSC, you can save tax of Rs 1.5 lakh under Section 80C of Income Tax. Now tax will have to be paid on Rs 8 lakh.

If you invest up to Rs 50,000 annually in the National Pension System (NPS), you are given an extra Rs 50,000 tax exemption under Section 80CCD (1B). Now if we subtract Rs 50 thousand more, tax will be charged on Rs 7.50 lakh.

If you have also taken a home loan, you can save up to Rs 2 lakh on its interest under Section 24B of Income Tax. If we subtract Rs 2 lakh more from Rs 7.50 lakh, the total tax income will be Rs 5.50 lakh.

You can save tax up to Rs 25 thousand by taking a medical policy under Section 80D of Income Tax. Your name, your wife and children’s names should be there in this health insurance. Apart from this, if in the name of your parents

You can get additional discount of up to Rs 50,000 by purchasing health insurance.
In such a situation, if you subtract 75 thousand from Rs 5.50 lakh, the total tax liability will be Rs 4.75 lakh, which will be below the old tax regime limit of Rs 5 lakh. This means that you will not have to pay a single rupee tax on annual income of Rs 10 lakh.

Indian Railways Rules : Good news for lakhs of passengers traveling by train, this rule of buying train tickets has changed, know now

The post Income Tax Saving Tips: You will not have to pay even a single rupee tax on income up to Rs 10 lakh, know how to save first appeared on Rightsofemployees.com.

EEE means Exempt Exempt Exempt. There are three ways in which tax is saved in the schemes falling in this category. In this, there is no tax on the amount deposited every year, apart from this, there is no tax on the interest earned every year and the entire amount received at the time of maturity is also tax free i.e. investment, interest/return and maturity are tax free. There is savings. Know in which schemes you can avail this benefit-

Public Provident Fund (PPF)

PPF is a better option to save tax and invest in a safe place. Under this scheme, any investor can deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a year. Annual interest of 7.1 percent is available on PPF. The special thing about this scheme is that the investment money, interest received on the investment money and maturity amount are all tax free.

[

Under this scheme the investor gets 8.2 percent interest. Under this scheme, any father can deposit Rs 250 to Rs 1.5 lakh annually in his daughter’s account. The money is deposited for 15 years and when the daughter turns 21, the entire amount along with interest is returned to the investor. To invest in this, the daughter’s age should be less than 10 years.

Equity Linked Savings Scheme (ELSS) is also called tax saving mutual funds. In equity linked saving schemes, you can deposit money in lump sum and can also do it through SIP. Its lock-in is for three years. After this you can withdraw money whenever you want or continue your investment. If you withdraw the amount after 3 years, you get tax benefits.

Employee Provident Plan (EPF)

If you are employed then you can also save your tax through EPF. EPF is also an EEE category scheme. At present 8.25 percent interest is given on it. In such a situation, you can add a good amount of money through this scheme. If you want, you can also increase your contribution through VPF.

Home Loan : These 5 big banks are offering the cheapest home loans, check the complete list

The post Income Tax Saving Tips: These 4 schemes come in EEE category, if you invest money in them, tax will be saved in 3 ways. first appeared on Rightsofemployees.com.

Income Tax Saving Option: The financial year is about to end. Everyone is planning to save as much tax as possible. To save income tax, salaried class invest under Section 80C of Income Tax. By investing in this, you get tax relief on income up to Rs 1.5 lakh. But if even after this your tax is due, then you can save your tax by investing under other sections of income tax. If you are also thinking about tax saving options other than 80C, then we give you information about it.

NPS will save tax

If your limit under Section 80C has been exhausted and you want to save tax, then do not worry. You can save tax up to Rs 50,000 by investing in the National Pension Scheme (NPS). This investment is in addition to the limit of Rs 1.5 lakh under section 80C. This means that you can save tax on total income up to Rs 2 lakh.

Exemption on Health Insurance:

If you pay health insurance premium for your family, you can get tax exemption on it. Under Section 80D, you can invest up to Rs 25,000 on the health insurance premium of yourself, spouse and children. Apart from this, if the age of your parents is less than 60 years, then you can pay a premium of up to Rs 25,000 for health insurance. But if your parents are senior citizens then this limit is up to Rs 50,000.

Exemption available on health checkup:

Do you know that you can also get tax exemption on getting a health checkup done? Under Section 80D, you can take deduction on the expenses incurred on investigation. Every year you can claim a maximum deduction of up to Rs 5,000. This amount comes within the limit of total deduction given under section 80D.

Exemption on interest on savings account

Under section 80TTA, individual taxpayers and Hindu Undivided Families (HUFs) (to whom section 80TTB does not apply) are entitled to a deduction on interest income from savings account opened in a bank, post office or co-operative society. The benefit of maximum tax deduction up to Rs 10,000 is available in the financial year.

Exemption available on donation:

If you have donated funds to someone under Section 80G, then you can claim deduction on the donated amount. But it should be kept in mind that the amount of this donation should not be more than 10% of the total income. This deduction is also available on donations made for the renovation of temples, mosques and churches approved by the Central Government.

7th Pay Commission: On March 30, central employees across the country will get a gift, this much will be the increase in salary after 4% DA hike.

The post Income Tax Saving : Opportunity to save tax till 31st March, there will be exemption not only in Section 80C but also on investing here. first appeared on Rightsofemployees.com.

Income Tax Saving Option: The financial year is about to end. Everyone is planning to save as much tax as possible. To save income tax, salaried class invest under Section 80C of Income Tax. By investing in this, you get tax relief on income up to Rs 1.5 lakh. But if even after this your tax is due, then you can save your tax by investing under other sections of income tax. If you are also thinking about tax saving options other than 80C, then we give you information about it.

NPS will save tax

If your limit under Section 80C has been exhausted and you want to save tax, then do not worry. You can save tax up to Rs 50,000 by investing in the National Pension Scheme (NPS). This investment is in addition to the limit of Rs 1.5 lakh under section 80C. This means that you can save tax on total income up to Rs 2 lakh.

Exemption on Health Insurance:

If you pay health insurance premium for your family, you can get tax exemption on it. Under Section 80D, you can invest up to Rs 25,000 on the health insurance premium of yourself, spouse and children. Apart from this, if the age of your parents is less than 60 years, then you can pay a premium of up to Rs 25,000 for health insurance. But if your parents are senior citizens then this limit is up to Rs 50,000.

Exemption available on health checkup:

Do you know that you can also get tax exemption on getting a health checkup done? Under Section 80D, you can take deduction on the expenses incurred on investigation. Every year you can claim a maximum deduction of Rs 5,000. This amount comes within the limit of total deduction given under section 80D.

Exemption on interest on savings account

Under section 80TTA, individual taxpayers and Hindu Undivided Families (HUFs) (to whom section 80TTB does not apply) are entitled to a deduction on interest income from savings account opened in a bank, post office or co-operative society. The benefit of maximum tax deduction up to Rs 10,000 is available in the financial year.

Exemption available on donation:

If you have donated funds to someone under Section 80G, then you can claim deduction on the donated amount. But it should be kept in mind that the amount of this donation should not be more than 10% of the total income. This deduction is also available on donations made for the renovation of temples, mosques and churches approved by the Central Government.

RBI Penalty on Banks : RBI again imposed fine of crores on banks, check the list if your bank is included

The post Income Tax : Opportunity to save tax till 31st March, there will be exemption not only in Section 80C but also on investing here. first appeared on Rightsofemployees.com.

NPS will save tax

If your limit under Section 80C has been exhausted and you want to save tax, then do not worry. You can save tax up to Rs 50,000 by investing in the National Pension Scheme (NPS). This investment is in addition to the limit of Rs 1.5 lakh under section 80C. This means that you can save tax on total income up to Rs 2 lakh.

Exemption on Health Insurance:
If you pay health insurance premium for your family, you can get tax exemption on it. Under Section 80D, you can invest up to Rs 25,000 on the health insurance premium of yourself, spouse and children. Apart from this, if the age of your parents is less than 60 years, then you can pay a premium of up to Rs 25,000 for health insurance. But if your parents are senior citizens then this limit is up to Rs 50,000.

Exemption available on health checkup:
Do you know that you can also get tax exemption on getting a health checkup done? Under Section 80D, you can take deduction on the expenses incurred on investigation. Every year you can claim a maximum deduction of Rs 5,000. This amount comes within the limit of total deduction given under section 80D.

Exemption on interest on savings account
Under section 80TTA, individual taxpayers and Hindu Undivided Families (HUFs) (to whom section 80TTB does not apply) are entitled to a deduction on interest income from savings account opened in a bank, post office or co-operative society. The benefit of maximum tax deduction up to Rs 10,000 is available in the financial year.

Exemption available on donation:
If you have donated funds to someone under Section 80G, then you can claim deduction on the donated amount. But it should be kept in mind that the amount of this donation should not be more than 10% of the total income. This deduction is also available on donations made for the renovation of temples, mosques and churches approved by the Central Government.

The post Income Tax Saving: Opportunity to save tax till 31st March, there will be exemption not only in Section 80C but also on investing here. first appeared on Rightsofemployees.com.

If you want to secure the financial future of your family, then life insurance policy can be one of the best options for that. But, many times people take a policy (Life Insurance Tax Benefits) just to save tax.

Should one take insurance to save tax?

If your aim is only to save tax (Income Tax 2024), then you should look at other options other than insurance policy. There are many such schemes of the government, by investing in which you can not only save a good amount of tax, but you also get excellent returns.

Whereas, if we talk about insurance policy, it costs more. This also affects your returns. Many times the returns come down to just 4 to 5 percent.

Why should one take an insurance policy?

The whole purpose of an insurance policy should be to cover your risks. Such as compensation for physical and financial losses caused by accidents. This secures the financial future of you and your family. Life insurance should not be seen as a tax saving option.

One should be more cautious during January-March. Insurance companies put more pressure on their agents to sell policies during January to March, because they have to meet the target. During this time, taxpayers also look for options to save tax. In such a situation, the agents sell the policy at a huge premium under the pretext of saving more tax.

If you want to get more returns then invest your money here

Many government savings schemes give much better returns than insurance policies. In these, tax exemption is available under 80C. Now like 8.2 percent return is being given on Sukanya Samriddhi Yojana and 7.1 percent return on Public Provident Fund (PPF).

Tax exemption of Rs 1.5 lakh is also available on mutual fund schemes like Equity Linked Saving Scheme (ELSS). Apart from this, returns can also be more than 10 percent.

HDFC Bank increased interest rates on fixed deposits, avail interest up to 7.75 percent

The post Income Tax Saving : If you are taking a life insurance policy just to save tax, then it can be a losing deal. first appeared on Rightsofemployees.com.

The season of tax saving has arrived. People earning more have started struggling to save tax. The central government has given tax exemption on income up to Rs 7 lakh under the new tax regime, while annual income up to Rs 5 lakh has been exempted under the old tax regime. But if your annual income is more than these two limits then you may have to pay tax.

People have to pay tax on higher income as per the tax slab. Under the old tax regime, the Income Tax Rule says that no tax will have to be paid on annual income up to Rs 2.5 lakh. There is a provision of 5% tax on income of Rs 2.5-5 lakh. Whereas 20% tax is charged on annual income of Rs 5-10 lakh. There is a 30% tax slab on annual income of Rs 10 lakh and above.

Tax can be saved even on income of Rs 10.50 lakh

According to this, if your annual income is Rs 10 lakh then you will have to pay 30% tax. However, if you want, you will not have to pay even a single rupee tax. Not only this, even if your salary is Rs 10.50 lakh, you can save the entire amount of tax by investing and taking advantage of exemptions.

How can you save tax on income of Rs 10.50 lakh?

1. A rebate of up to Rs 50 thousand is available as standard deduction. In such a situation, tax will now be levied on Rs 10 lakh.

2. By investing in schemes like PPF, EPF, ELSS, NSC, you can save tax of Rs 1.5 lakh under Section 80C of Income Tax. Now if we subtract Rs 1.5 lakh from Rs 10 lakh, Rs 8.5 lakh will come under tax.

3. Similarly, if you separately invest up to Rs 50,000 annually in the National Pension System (NPS), then under Section 80CCD (1B), you get help in saving income tax of additional Rs 50 thousand. Now if we subtract Rs 50 thousand more, Rs 8 lakh will come under the tax net.

4. If a home loan is also taken, then tax saving of up to Rs 2 lakh can be done on its interest under Section 24B of Income Tax. If you subtract another Rs 2 lakh from Rs 8 lakh, the total tax income will be Rs 6 lakh.

5. By taking a medical policy under Section 80D of Income Tax, you can save tax up to Rs 25 thousand. Your name, your wife and children’s names should be there in this health insurance. Apart from this, if you buy health insurance in the name of your parents, you can get an extra discount of up to Rs 50,000. In this case, if we subtract 75 thousand from Rs 6 lakh, the total tax liability will be Rs 5.25 lakh.

6. If you donate to any organization, you can avail tax benefit of up to Rs 25,000. Under Section 80G of Income Tax, you can claim tax deduction up to Rs 25,000 on the amount given as donation. After deducting Rs 25 thousand, your income will now come in the tax slab of Rs 5 lakh. According to Income Tax rules, no tax will have to be paid under the old tax regime on income up to Rs 5 lakh.

The post Income Tax Saving Rule: Salary is more than 10 lakhs, still not even a single rupee of income tax will be charged, this is the fund first appeared on Rightsofemployees.com.

If you want to save tax for this financial year, there is still time. If you want to save tax before the end of the financial year, then you have only two months and a few days left. In such a situation, the easiest way is section 80C. But, apart from this, if you want to get tax exemption then there can be other good options. Today we will tell you about such options, where tax saving of up to Rs 4 lakh can be done.

There is a tax exemption of Rs 7 lakh in the new tax regime. But, in the old tax regime, the easiest way to get tax exemption is available only in Section 80C (Tax Saving Section 80C). But, here the discount is available only up to Rs 1.5 lakh. However, there are some options other than Section 80C.

1. Rebate on interest on savings account

Under Section 80TTA of Income Tax, interest received on deposits in savings account comes under the ambit of tax exemption. Tax exemption can be claimed on annual interest up to Rs 10,000. At the same time, senior citizens get tax exemption on interest up to Rs 50,000 annually under Section 80TTB on various savings accounts.

2. National Pension Scheme (NPS)

Tax exemption of up to Rs 50 thousand is available on investing in NPS. This exemption is available in section 80CCD (1B). This means that if your annual income is taxable then you can get a rebate of up to Rs 50 thousand by investing here.

3. Health Insurance (80D)

There is tax exemption on health insurance premium in section 80D of Income Tax. Who is included in the policy, what is their age, you can claim tax exemption from ₹ 25,000 to ₹ 1 lakh. You can claim Rs 25000 each for yourself and your parents.

4. Home Loan (80EE)

There are two types of tax exemptions available on home loan repayment. There is tax exemption up to ₹ 1.5 lakh under 80C on the principal amount. At the same time, under Section 24, there is tax exemption on interest up to a maximum of ₹ 2 lakh. Apart from this, the government gives additional exemption on home loan interest under Income Tax Section 80EE to those buying their first house. There should not be any other house in your name. Under this section you can claim additional tax up to Rs 50,000. The condition is that the price of the property should be less than Rs 50 lakh and the loan should be Rs 35 lakh or less.

5. Exemption on donation to charitable institute

If you do charity, you can save tax on this also. Exemption on charitable amount can be claimed under Section 80CCC of Income Tax. Donation made to a recognized charitable institution comes under the ambit of tax exemption. However, exemption is not available on the entire donation. You can avail tax exemption on amounts more than Rs 200.

The post Income Tax Saving: Income tax will be saved up to Rs 4 lakh, know how? first appeared on Rightsofemployees.com.

If we talk about small income ie Rs 6 lakh per annum, then in the old tax regime, if you do not make any tax saving investment, then you will have to pay income tax of Rs 23,400 on this much income. But, if you adopt the new tax regime, then your Rs 6 lakh will be completely out of the tax net. That is, you will directly save tax of Rs 23,400.

If a person earns Rs 10 lakh annually, then under the new regime, he will have a total tax liability of Rs 54,600. On the other hand, if you choose the old tax slab, then you will have to pay tax of Rs 78,000 on this much income. In this way, you can save tax of Rs 23,400 under the new slab.

If you earn 50 lakh rupees annually, then you will reach the high bracket of 30 percent and according to the new tax regime, there will be a tax liability of Rs 12,32,400. For those adopting the old bracket, income tax of Rs 12.87 lakh will be made on earning Rs 50 lakh. That is, now you will be able to save Rs 54,600 in the new tax regime as compared to the old one.

If someone’s earning is Rs 1 crore annually, then his income will be included in the high tax bracket ie 30 per cent slab. Rs 30,71,640 will be taxed on this income if you adopt the new tax regime. At the same time, the total tax liability will come to Rs 31,31,700 on those who are associated with the old system. That is, in the new system, now you can save income tax of Rs 60,060 as compared to the old one.

How much liability is 2 crores If a person earns 2 crores annually, then the highest tax rate of 30 percent will be applicable on him. Surcharge will also be imposed on this. Thus the total tax liability will be Rs 67,99,260, if you opt for the new tax regime. On the other hand, those adopting the old tax regime will have to pay a total income tax of Rs 68,62,050. In this way you will directly save Rs 62,490.

The post Income Tax: How much tax will be applicable on earning from 10 lakh to 1 crore? first appeared on Rightsofemployees.com.

Yes, people go to CA or agent to save their tax. You may have to pay consulting fees to them. In such a situation, if you want to avoid this fee also, then today we are telling you about these rules. With this you will be able to save your tax easily.         

Tax will not be charged from such formula  

• Suppose your annual income is Rs 10 lakh 50 thousand, then you can claim standard deduction under the Income Tax Act. Under this, you will get a discount of 50 thousand rupees. Now the taxable income is Rs 10 lakh. Let us know how we can reduce it. 
• Now you can claim Rs 1 lakh 50 thousand under Section 80C of the Income Tax Department Act. Under this, you can claim the money invested in LIC (LIC), PPF (PPF), children’s tuition fee, mutual fund (ELSS) and EPF (EPF). Apart from this, you can also claim the home loan amount. Now your taxable income remains 8 lakh 50 thousand rupees. 

• You can invest 50 thousand rupees in National Pension System (NPS). Under this, you will be able to claim under 80CCD (1B). In this way, an income of Rs 8 lakh is saved. How else can it be reduced. Let’s know. 
• Now you can claim Rs 2 lakh under Section 24B of the Income Tax Act. You get this rebate when you have paid this much amount as home loan interest. In this way, now you will have to pay tax on an income of Rs 6 lakh. 
• Now you can take medical health insurance claim of 25 thousand rupees under 80D. Not only this, if you buy health insurance for senior citizens (parents), you can claim an additional Rs 50,000. In this way, you can claim a health insurance premium of Rs 75,000. 
• If you donate 25 thousand rupees to any institution or trust, then it can be claimed under section 80G of income tax. Now your taxable income is saved at Rs 5 lakh. 

• People whose income is between Rs 2 lakh 50 thousand to Rs 5 lakh, they do not have to pay tax because the government gives a rebate of 5% on this income. In this way you can save tax on Rs 10 lakh 50 thousand.    

The post Income Tax Saving: 1 rupee tax will not have to be paid even on 10 lakh income, follow this master rule of CA first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News! Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News! Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

But among all this, the thing that has worked for you the most is that if you are employed, then your company must have started asking for actual investment proof from you, on the basis of which your tax will be deducted. If you haven’t asked yet, you will ask in a few days. But for tax saving you need to prepare well in advance.

Form-16 will be prepared on this basis, you will have to inform your company about what investments you have made since April 1 till now. Based on this, your Form-16 will be prepared. Let us help you in planning for tax saving. As a responsible citizen of the country, it is your duty to pay tax. But it is good for you to save as much tax as you can.

Understand here, how can you save tax?

You can invest the tax saving money for the future of your family or child. From mutual funds to FDs, all investment options are available in the market today. Today we talk about your salary and tax. Even if your salary is Rs 12 lakh, you do not need to pay Rs 1 tax.

It is important to plan properly to save tax, it is necessary for you to plan properly. For this, you can also consult an expert. If money has been deducted from your salary in the company where you have worked, then on the basis of this calculation, you can get back the deducted money by filing ITR in June-July. Let’s see the complete calculation in an easy way…

If your salary is 12 lakhs, then you come under 30 percent tax. Actually, there is a liability of 30 percent on the annual income of more than Rs 10 lakh.

This is the complete math

1. Every company gives salary to its employees in two parts. In a company it is called Part-A and Part-B. Somewhere it is called Part-1 and Part-2. Tax has to be paid on Part-A or Part-1 salary. Usually, on a salary of 12 lakhs, two lakh rupees are kept in Part-B or Part-2. In this way your taxable income has come down to Rs 10 lakh.

2. After this, deduct Rs 50,000 given by the Ministry of Finance as standard deduction. After deducting these, your taxable income comes down to Rs 9.50 lakh.

3. Under Section 80C of Income Tax, you can claim savings of up to Rs 1.5 lakh. In this, you can claim tuition fee, LIC (LIC), PPF (PPF), mutual fund (ELSS), EPF (EPF) or home loan principal etc. Now your taxable income has come down to Rs.8 lakh.

4. Under section 24B of income tax, you get a deduction of two lakh rupees on home loan interest. In this way, your taxable income has come down to Rs.6 lakh here.

5. After this you will have to invest 50 thousand rupees in National Pension System (NPS) under 80CCD (1B) to make the taxable income zero (0). Here the taxable salary has come down to Rs 5.5 lakh per annum.

6. Under Section 80D of Income Tax, you can claim premium for health insurance for children, wife and parents. A premium of up to Rs 25,000 can be claimed for the child and wife. If your parents are senior citizens, you can claim Rs 50,000 as premium. After deducting these two, your taxable income comes down to Rs 4.75 lakh.

Let us tell you that on the income of Rs 2.5 lakh to Rs 4.75 lakh, a tax of Rs 11250 is made at the rate of 5 percent. But there is a tax exemption of up to Rs 12,500 from the Ministry of Finance. In this way your tax liability becomes zero.

The post Income Tax Saving: You will not have to pay even ₹ 1 tax on a salary of 10 lakhs, not 12 lakhs, understand the calculation here first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News! Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News! Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

If your salary package is 10 lakh rupees and you pay a large part of your earnings in the form of tax, then be careful. Perhaps you would think that there is no way to save tax, in such a situation, if it is right to pay tax, then you are wrong. Not only this, even if your salary package is 10.5 lakh rupees, even then you will not have to pay 1 rupee as tax. Let’s know the complete maths…

On a salary of 10.5 lakhs, you fall in the slab of 30 percent tax. Because 30 percent income tax is liable on annual income above 10 lakhs.

This is the complete maths
1. If your salary is 10.5 lakh rupees, then first of all subtract 50 thousand given by the government as standard deduction. In this way your taxable income is now Rs 10 lakh.

2. Now you can claim Rs 1.5 lakh under 80C. In this, you can claim children’s tuition fee, PPF, LIC, EPF, Mutual Fund (ELSS), principal of home loan etc. In this way, your taxable income here has been reduced to Rs 8.5 lakh.

3. You have to invest 50 thousand under National Pension System (NPS) under 80CCD(1B) to make tax zero (0) on salary of 10.5 lakhs. In this way your taxable salary has come down to Rs 8 lakh.

4. Now under Section 24B of Income Tax, you can claim tax exemption on home loan interest of Rs 2 lakh. In this way, now your taxable income has come down to Rs 6 lakh.

5. Under Section 80D of Income Tax, you can claim a premium of 25 thousand rupees medical health insurance for your family (wife and children). Apart from this, senior citizens can claim 50 thousand for health insurance premium paid for parents. After claiming total health insurance premium of 75 thousand, your taxable income has come down to 5.25 lakhs.

6. Now you have to donate 25 thousand rupees to any organization or trust to bring your taxable income to 5 lakhs. You can claim it under Section 80G of Income Tax. On donating 25 thousand, your taxable income came down to Rs 5 lakh.

You will have to pay zero tax
, now your taxable income has been reduced to Rs 5 lakh. On the income of 2.5 to 5 lakh rupees, at the rate of 5 percent, your tax becomes Rs 12,500. But there is an exemption from the government on this. In this case your tax liability becomes zero.

The post Income Tax : Big news! Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big Update! Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News! Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

If your salary package is 10 lakh rupees and you pay a large part of your earnings in the form of tax, then be careful. Perhaps you would think that there is no way to save tax, in such a situation, if it is right to pay tax, then you are wrong. Not only this, even if your salary package is 10.5 lakh rupees, even then you will not have to pay 1 rupee as tax. Let’s know the complete maths…

On a salary of 10.5 lakhs, you fall in the slab of 30 percent tax. Because 30 percent income tax is liable on annual income above 10 lakhs.

This is the complete maths
1. If your salary is 10.5 lakh rupees, then first of all subtract 50 thousand given by the government as standard deduction. In this way your taxable income is now Rs 10 lakh.

2. Now you can claim Rs 1.5 lakh under 80C. In this, you can claim children’s tuition fee, PPF, LIC, EPF, Mutual Fund (ELSS), principal of home loan etc. In this way, your taxable income here has been reduced to Rs 8.5 lakh.

3. You have to invest 50 thousand under National Pension System (NPS) under 80CCD(1B) to make tax zero (0) on salary of 10.5 lakhs. In this way your taxable salary has come down to Rs 8 lakh.

4. Now under Section 24B of Income Tax, you can claim tax exemption on home loan interest of Rs 2 lakh. In this way, now your taxable income has come down to Rs 6 lakh.

5. Under Section 80D of Income Tax, you can claim a premium of 25 thousand rupees medical health insurance for your family (wife and children). Apart from this, senior citizens can claim 50 thousand for health insurance premium paid for parents. After claiming total health insurance premium of 75 thousand, your taxable income has come down to 5.25 lakhs.

6. Now you have to donate 25 thousand rupees to any organization or trust to bring your taxable income to 5 lakhs. You can claim it under Section 80G of Income Tax. On donating 25 thousand, your taxable income came down to Rs 5 lakh.

You will have to pay zero tax
, now your taxable income has been reduced to Rs 5 lakh. On the income of 2.5 to 5 lakh rupees, at the rate of 5 percent, your tax becomes Rs 12,500. But there is an exemption from the government on this. In this case your tax liability becomes zero.

The post Big News For Income Tax : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

If your salary package is 10 lakh rupees and you pay a large part of your earnings in the form of tax, then be careful. Perhaps you would think that there is no way to save tax, in such a situation, if it is right to pay tax, then you are wrong. Not only this, even if your salary package is 10.5 lakh rupees, even then you will not have to pay 1 rupee as tax. Let’s know the complete maths…

On a salary of 10.5 lakhs, you fall in the slab of 30 percent tax. Because 30 percent income tax is liable on annual income above 10 lakhs.

This is the complete maths
1. If your salary is 10.5 lakh rupees, then first of all subtract 50 thousand given by the government as standard deduction. In this way your taxable income is now Rs 10 lakh.

2. Now you can claim Rs 1.5 lakh under 80C. In this, you can claim children’s tuition fee, PPF, LIC, EPF, Mutual Fund (ELSS), principal of home loan etc. In this way, your taxable income here has been reduced to Rs 8.5 lakh.

3. You have to invest 50 thousand under National Pension System (NPS) under 80CCD(1B) to make tax zero (0) on salary of 10.5 lakhs. In this way your taxable salary has come down to Rs 8 lakh.

4. Now under Section 24B of Income Tax, you can claim tax exemption on home loan interest of Rs 2 lakh. In this way, now your taxable income has come down to Rs 6 lakh.

5. Under Section 80D of Income Tax, you can claim a premium of 25 thousand rupees medical health insurance for your family (wife and children). Apart from this, senior citizens can claim 50 thousand for health insurance premium paid for parents. After claiming total health insurance premium of 75 thousand, your taxable income has come down to 5.25 lakhs.

6. Now you have to donate 25 thousand rupees to any organization or trust to bring your taxable income to 5 lakhs. You can claim it under Section 80G of Income Tax. On donating 25 thousand, your taxable income came down to Rs 5 lakh.

You will have to pay zero tax
, now your taxable income has been reduced to Rs 5 lakh. On the income of 2.5 to 5 lakh rupees, at the rate of 5 percent, your tax becomes Rs 12,500. But there is an exemption from the government on this. In this case your tax liability becomes zero.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

If your salary package is 10 lakh rupees and you pay a large part of your earnings in the form of tax, then be careful. Perhaps you would think that there is no way to save tax, in such a situation, if it is right to pay tax, then you are wrong. Not only this, even if your salary package is 10.5 lakh rupees, even then you will not have to pay 1 rupee as tax. Let’s know the complete maths…

On a salary of 10.5 lakhs, you fall in the slab of 30 percent tax. Because 30 percent income tax is liable on annual income above 10 lakhs.

This is the complete maths
1. If your salary is 10.5 lakh rupees, then first of all subtract 50 thousand given by the government as standard deduction. In this way your taxable income is now Rs 10 lakh.

2. Now you can claim Rs 1.5 lakh under 80C. In this, you can claim children’s tuition fee, PPF, LIC, EPF, Mutual Fund (ELSS), principal of home loan etc. In this way, your taxable income here has been reduced to Rs 8.5 lakh.

3. You have to invest 50 thousand under National Pension System (NPS) under 80CCD(1B) to make tax zero (0) on salary of 10.5 lakhs. In this way your taxable salary has come down to Rs 8 lakh.

4. Now under Section 24B of Income Tax, you can claim tax exemption on home loan interest of Rs 2 lakh. In this way, now your taxable income has come down to Rs 6 lakh.

5. Under Section 80D of Income Tax, you can claim a premium of 25 thousand rupees medical health insurance for your family (wife and children). Apart from this, senior citizens can claim 50 thousand for health insurance premium paid for parents. After claiming total health insurance premium of 75 thousand, your taxable income has come down to 5.25 lakhs.

6. Now you have to donate 25 thousand rupees to any organization or trust to bring your taxable income to 5 lakhs. You can claim it under Section 80G of Income Tax. On donating 25 thousand, your taxable income came down to Rs 5 lakh.

You will have to pay zero tax
, now your taxable income has been reduced to Rs 5 lakh. On the income of 2.5 to 5 lakh rupees, at the rate of 5 percent, your tax becomes Rs 12,500. But there is an exemption from the government on this. In this case your tax liability becomes zero.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Income Tax Saving: The tax law of the country gives such facilities to the income tax payers, by which you can reduce your tax liability. One of these is to reduce the tax liability by giving information about the loss in business or investment. Under the Income Tax Act, the income earned by the taxpayers has been kept in five major categories. In which salary, house property, capital gains, business or professional and other sources are prominent.

To understand how to reduce your tax liability by adjusting the loss, let’s understand the two methods of loss adjustment. One intra head and the other inter head. Taxpayers can be adjusted for loss from one source of income to other sources of income within the same head. For example, you can set off a loss from Business X with a profit from Business Y.

How is the loss adjusted?

On the other hand, in differential head adjustment, the taxpayer can set off the loss from one head of income source with the income within the other head. For example, suppose you can adjust the head of house property with salary income. Tax experts say that taxpayers should do intrahead adjustments before interhead adjustments.

Capital loss

Capital loss cannot be set off against income falling under any other head. Meaning you can adjust the capital loss with the capital gain only. Also, you can adjust the long term capital loss with the long term capital gain. At the same time, you can adjust short term capital loss with both long term and short term capital gain.

House asset

The law of loss on account of house property is more lenient from the point of view of adjustment. It can be adjusted against income from any other head, but only to the extent of Rs 2 lakh in a particular year. Even if the income tax return is not filed by the deadline, the taxpayer can adjust it for the next eight years. However, in subsequent years, it can be adjusted only from the income from house property. These rules will also apply to commercial property.

The post Income Tax Saving: If you have suffered a loss, then you can reduce the tax liability, know what is the method? first appeared on Rightsofemployees.com.