How much tax will I pay if I earn Rs 10 lakhs per annum?
Table of Contents
How much tax will I pay if I earn Rs 10 lakhs per annum?
Income Tax Slabs for individuals below 60 years – Old and New Tax Regimes
| Income Tax Slab | ||
|---|---|---|
| New | Income | Old |
| 10\% | Rs. 5 lakhs to Rs. 7.5 lakhs | 20\% |
| 15\% | Rs. 7.5 lakhs to Rs. 10 lakhs | 20\% |
| 20\% | Rs. 10 lakhs to Rs. 12.5 lakhs | 30\% |
How can I save maximum taxes?
Recommended ways of saving taxes under Sec 80C,80D and 80EE
- Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
- Buy Medical Insurance, maximum deduction allowed is Rs.
- Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.
What is maximum tax saving?
The most popular tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act, Section 80C includes various investments and expenses you can claim deductions on – up to the limit of Rs. 1.5 lakh in a financial year.
How to earn tax-free income from foreign NRE account?
Some smart Indians residing abroad, take a loan from the foreign country at 3-4\% and invest their income in India through NRE account and earn tax-free income at 8-9\%. Point to note- though their income from NRE account is tax-free in India, but the earnings may get taxed in their residing country (as per country law).
What are the tax incentives for NRIs investing in NRE accounts?
Indian Government provides tax incentives to attract investments from NRIs. Individuals with deposits in an NRE account don’t have to pay tax on interest income earned on these deposits.
How can I claim HUF on my income tax return?
You have to get a separate PAN and bank account number. Income Tax Department considers HUF as a separate entity for taxation purpose. You have 500,000 income from your salary and 50,000 income from rent through the ancestral property. Then you can show rent income from family property as income of the HUF.
How can I save tax on both my business entities?
You can save tax on both of your entities by investing in various tax saving options like under section 80C. You will virtually pay no taxes on your secondary income if you invest in tax saving instruments.