How can I save tax on 10 lakhs?

Tax savings scheme under Section 80C, NPS under Section 80CCD(1b), education or house loans, and even insurance premiums can help you achieve the goal of zero tax in a given year if your annual salary is less than Rs 10 lakh per year.

How much tax do I have to pay for 10 lakhs per year?

Taxpayers earning above Rs 10 lakh usually cough up thousands of rupees as income tax, if not lakhs. However, by investing in the right tools, you won't have to pay a single penny. If you earn Rs 10,50,000 per annum, and you're aged less than 60, you will come under the 30% income tax slab.

How can I reduce taxable income?

Where can I invest to avoid tax?

Where should I put money to avoid taxes?

Using Tax-Advantaged Accounts

You could also reduce your capital gains tax by investing in your retirement accounts and other tax-advantaged accounts, such as Roth IRAs, Roth 401(k)s, HSAs and 529 plans. Basically, you're placing money into accounts where your earnings never hit your tax returns.

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What income is tax free?

As per income tax laws, filing income tax returns is mandatory for individuals whose total income during the financial year exceeds the exemption limit of more than the gross total income of ₹2,50,000.

How can I save tax other than 80C?

How do I maximize my tax return?

How can I reduce my income tax in India 2022?

Can I claim both 80C and 80D?

Section 80C offers tax deductions on different types of tax-saving investments, such as ULIP, PPF, ELSS, EPF, LIC premium, etc. Section 80D deduction is allowed for availing tax exemptions on health insurance premiums paid for self, family, & parents and expenses incurred on preventive health check-ups.

How do I invest 80D?

What is the maximum limit in 80C?

What is the maximum tax exemption under 80C? You can claim a maximum deduction of upto ₹ 1.5 lakhs from your total income under Section 80C.

How much money is tax free in India?

✅What is the amount of tax-free income? According to new and old tax regimes, an individuals income below ₹ 2.50 Lakh is exempted from tax. However, you can claim tax rebate on income upto ₹ 5 Lakh and make it tax free.

At what salary do I pay tax?

Any Indian citizen aged below 60 years is liable to pay income tax if their income exceeds 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs. 3 lakhs, they will have to pay taxes to the government of India.

How can I pay zero tax upto 15 lakhs?

How much money can I save in my bank savings account without tax?

Thus, as cash deposits and withdrawals of Rs 10 lakh or more in a bank account in a financial year are required to be reported to the tax authorities, you need to be careful if you are exceeding the prescribed threshold. This limit is Rs 50 lakh and more in case of current accounts.

Is SIP tax free?

SIPs can be one of the best tax-saving instruments with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961.

Does all SIP comes under 80C?

Unfortunately, none of your Systematic Investment Plans (SIPs) are in ELSSs. Therefore, you cannot claim any tax deduction on your investments under Section 80C. Investments in ELSS qualify for a tax deduction of up to ₹1.5 lakh under Section 80C.

How can I save my tax in 30% bracket?

What is limit for 80D?

For a person aged below 60 years, the limit for deduction under Section 80D is upto `25,000. The limit of `25,000 includes `5,000 on preventive health checkup. If the age of the insured is above 60 years, the limit for deduction increases upto `50,000.

Who is exempt from paying tax?

Types of Exempt Income

Allowance on transportation, children's education, subsidy on hostel fee. Exemption on Housing Loan. Income defined as per Section 10, Section 54 of the Income Tax Act, 1961. Leave and Travel Allowance.

Can I show medical bills in ITR?

As per the provisions of Section 80D of the Income Tax Act, 1961, an individual is allowed an aggregate deduction of up to ₹50,000 per annum towards following payments made by him, on the health of his senior citizen parents (aged 60 years or more): Health insurance premium up to ₹50,000 per annum.