How can I save tax in 12 lakhs?
Table of Contents
How can I save tax in 12 lakhs?
Tax Deductions under Section 80(C)
- Investments in PPF (Public Provident Fund)
- Investments in EPF (Employee Provident Fund)
- Investments in ELSS funds (Equity-Linked Savings Scheme)
- Investments in NSC (National Savings Certificates)
- Payment of premiums against Life Insurance Policies.
Which tax regime is better for above 15 lakhs?
Old vs New: A Comparison For Different Slabs
| Income tax slab for FY 2020-21 old regime | Annual Income | New Regime FY 2020-21 |
|---|---|---|
| 20\% | Rs. 7.5 – 10 lakh | 15\% |
| 30\% | Rs. 10-12.5 lakh | 20\% |
| Rs. 12.5-15 lakh | 25\% | |
| Rs. 15 and above | 30\% |
How to save tax on salary in India?
While Kartik knew how to save tax on salary in India mainly by using tax saving instruments, he was not aware of another way. There are different allowances that are exempt up to a particular limit and by adjusting and structuring your salary to reflect that, you can ensure you reduce the total tax payout.
How much is the standard deduction for 80(C) in India?
Additionally, let us assume you intend to avail ₹ 50,000 in the standard deduction and ₹ 150000 in tax exemption u/s 80 (C). Moreover, your tax liability will be Rs 2,10,600 after taking your deduction and exemption into account. Further, You are not allowed to avail of any deduction/exemption in this tax structure.
Is 15 lakhs a good salary in India?
Further, if you are fairly young and have no ailments, 15 lakhs per annum is considered a good salary by Indian standards. 3. How much tax do I pay on 15 lakhs?
What are the sources of income for section 80tta?
– Section 80TTA allows for Rs.10,000 deduction on interest earned on savings accounts which again is quite a common source of income Let’s compute the total tax liability considering the salary income and a combination of tax-saving investments and deductible expenses from the aforementioned sections of the Income Tax Act