How much tax do I pay on 2 lakhs?

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How much tax do I pay on 2 lakhs?

The Union Budget 2019-20 has proposed full tax rebate for income up to ₹ 5 lakhs u/s 87A. Nil. ₹12,500 + 10\% of Income exceeding ₹500,000….FAQs.

Individuals aged below 60years
Income Tax Rate
Upto ₹ 2,50,000 Nil.
₹ 2,50,001 to ₹ 5,00,000 5\%
₹ 5,00,001 to ₹ 10,00,000 ₹ 12,500 + 20\% of Income exceeding ₹ 500,000.

How can I save tax on higher salary?

Save Income Tax on Salary

  1. Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections.
  2. Medical Expenses.
  3. Home Loan.
  4. Education Loan.
  5. Shares and Mutual Funds.
  6. Long Term Capital Gains.
  7. Sale of Equity Shares.
  8. Donations.

How can I save tax on salary 2020 21?

Different investment options that can be claimed for tax deduction under section 80C are:

  1. Employee Provident Fund (EPF)
  2. Public Provident Fund (PPF)
  3. National Savings Certificates (NSC)
  4. 5-year post office or bank saving accounts.
  5. Equity Linked Savings Schemes (ELSS)
  6. Post Office Senior Citizen Scheme.
  7. Tuition fees of Kids.
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How can I save tax if I earn 15 lakh?

1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)

  1. Unit Linked Insurance Plans (ULIPs)
  2. Pension or Annuity Plans from Life Insurance Companies.
  3. Public Provident Fund (PPF) & Employee Provident Fund (EPF)
  4. New Pension Scheme Tier-I Account.
  5. Senior Citizen Savings Scheme.

How do I reduce my tax bill?

10 ways to minimise your tax bill

  1. ENSURE YOUR TAX CODE IS CORRECT.
  2. CLAIM YOUR FULL ENTITLEMENT TO TAX RELIEF ON PENSION CONTRIBUTIONS.
  3. CLAIM ALL TAX RELIEF DUE ON CHARITABLE DONATIONS.
  4. Reduce High Income child benefit tax charge.
  5. TAKE FULL ADVANTAGE OF YOUR PERSONAL ALLOWANCEs.
  6. CHOOSE THE BEST EMPLOYMENT STATUS.

How can I avoid paying tax on my salary?

How to Reduce Taxable Income

  1. Contribute significant amounts to retirement savings plans.
  2. Participate in employer sponsored savings accounts for child care and healthcare.
  3. Pay attention to tax credits like the child tax credit and the retirement savings contributions credit.
  4. Tax-loss harvest investments.
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How can I save tax illegally?

6 unusual ways to save income tax

  1. Reduce tax as a Hindu Undivided Family (HUF)
  2. Donate and claim up to 100 percent tax exemption.
  3. Invest Through Senior Citizen Parents.
  4. Reinvest Your Gains.
  5. Claim additional medical exemption by paying your parents’ insurance premium.

What are the tax deductions for 15 lakhs salary?

You can also take deduction for nps, home loan etc. Below is the actual tax calculation for current financial year on 15 lakhs salary. Deductions may vary. Total tax: 1,66,920 INR. In hand yearly salary after tax deductions: 13,33,080 INR.

What is the additional deduction on interest on 35 lakh home loan?

This additional deduction has been given on interest for loan up to Rs 35 lakh, provided the house value doesn’t exceed Rs 50 lakh. Assuming a loan of Rs 35 lakh to be paid over 20 years, the annual deduction comes to around Rs 2.5 lakh, including the Rs 2 lakh currently available.

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What are the easiest tax deductions under the Income Tax Act?

However the total loss that can be claimed on the broader head of income from house property is capped at Rs 2 lakh. This is probably the easiest deduction under the Income Tax Act that individuals can claim. Interest on savings accounts is tax free up to Rs 10,000 per year under Section 80TTA.

What is the deduction for transport allowance in PPF?

No transport allowance / term fees is allowed as deduction. Amount deposited in Public Provident Fund. You can open PPF account with any post office / SBI / ICICI Bank etc., Post office term deposit for 5 years / Bank FD scheme of 5 years. ELSS tax saving Mutual Funds.