How can I reduce my tax on 10 lakhs?

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How can I reduce my tax on 10 lakhs?

How to Save Tax for a Salary Above Rs 10 Lakhs?

  1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)
  2. Additional Reduction of Up To Rs 50,000 for NPS Investors (Section 80CCD.
  3. Reduce Your Taxable Income by Up To Rs 75,000 (Section 80D)
  4. Reduce Your Taxable Income by Up To Rs 2 lakhs (Section 24)

How can high earners reduce taxable income?

Invest in tax-efficient index mutual funds and exchange-traded funds (ETFs). Every high-income earner should have a plan to diversify the taxation of income in retirement. For taxable accounts, a tax-efficient index mutual fund and/or ETF may help reduce the taxes you pay on your investments year-to-year.

How can I save my income tax upto 12 lakhs?

Tax Deductions under Section 80(C)

  1. Investments in PPF (Public Provident Fund)
  2. Investments in EPF (Employee Provident Fund)
  3. Investments in ELSS funds (Equity-Linked Savings Scheme)
  4. Investments in NSC (National Savings Certificates)
  5. Payment of premiums against Life Insurance Policies.

How much tax do I pay on 10 lakh salary?

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\%
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How can I reduce my tax bill?

7 Best Tips to Lower Your Tax Bill from TurboTax Tax Experts

  1. Take advantage of tax credits.
  2. Save for retirement.
  3. Contribute to your HSA.
  4. Setup a college savings fund for your kids.
  5. Make charitable contributions.
  6. Harvest investment losses.
  7. Maximize your business expenses.

What is the tax for 1 crore in India?

Taxpayers with income between Rs 50 lakh and Rs 1 crore continue to pay 10\% surcharge, between Rs 1 crore and Rs 2 crore pay 15\%, between Rs 2 crore and Rs 5 crore pay 25\% and those with income over Rs 5 crore pay 37\%.

How can I avoid paying taxes on my savings account?

How to Avoid Tax on a Savings Account

  1. Invest your assets in a tax-deferred account(s), such as a traditional IRA or 401(k) to put off paying taxes until you withdraw the money in retirement.
  2. Keep your money in a tax-exempt account(s), such as a Roth IRA or a Roth 401(k).

How can I save my income tax in India on salary 2021 22?

8 Ways to Save Income Tax Under Section 80C

  1. Life Insurance. Life Insurance does not only provide full life coverage, but it is also the best way to save Taxes.
  2. ULIP’s.
  3. Mutual Funds.
  4. Tax Saving Fixed Deposit.
  5. SCSS or Senior Citizens Savings Scheme.
  6. Provident Fund.
  7. National Saving Certificates.
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How can I save tax on 7 lakhs?

If you earn an annual salary up to Rs. 7.75 lakh, here’s how you can pay zero tax

  1. Highlights.
  2. People earning up to Rs. 5 lakh are now exempt from paying tax.
  3. Salaried individuals earning up to Rs. 7.75 lakh can also pay zero tax.
  4. To reduce taxable income to Rs. 5 lakh, invest fully in Sections 80C, 80D, 80CCD(1B), 80TTA.

How can I save tax if I earn 20 lakh?

Tax Exempted Salary Components

  1. Meal Coupons.
  2. Car Maintenance.
  3. EPF (Contribution by Employer)
  4. NPS (Contribution by Employer)
  5. Gift voucher.
  6. Mobile Phone and the Internet Bill Reimbursement.
  7. Newspaper/Journal Allowance.
  8. Children Education/Hostel Allowance.

Which is the best tax saving investment plan in India?

16 Best Tax Saving Investment Plans. 1 1. Life Insurance Plan. Life Insurance Plan is one of the most important investment plans in India. It ensures that one’s family is financially 2 2. ELSS Funds. 3 2. Public Provident Fund (PPF) 4 3. Sukanya Samridhi Yojana. 5 4. National Savings Certificate.

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When is the best time to save taxes in India?

The ideal time to plan for tax saving investments is the beginning of the financial year. This will ensure you don’t pay more taxes and save taxes in India along with year-long returns on tax saving investment. While we all aim to save taxes in India why only a few of us succeed.

How to save income tax for salaried employees?

10 Best ways to save Income Tax for Salaried Employees 1 10 Tax Saving Tips and Tricks for Salaried Individuals 2 House Rental Allowance (HRA) 3 Leave Travel Allowance (LTA) 4 Income from Gratuity 5 Food/Meal Coupons 6 Standard Deduction 7 Telephone/Internet Expenses 8 Voluntary Retirement Scheme 9 Medical Insurance

What is the maximum amount of professional tax in India?

The maximum amount of professional tax that can be levied by a state is Rs 2,500. It is usually deducted by the employer and deposited with the state government. In your Income Tax Return, professional tax is allowed as a deduction from your salary income a. Exemption of Leave Encashment Check with your employer about their leave encashment policy.