How can I save tax on 20 lakhs?
Tax Exempted Salary Components
- Meal Coupons.
- Car Maintenance.
- EPF (Contribution by Employer)
- NPS (Contribution by Employer)
- Gift voucher.
- Mobile Phone and the Internet Bill Reimbursement.
- Newspaper/Journal Allowance.
- Children Education/Hostel Allowance.
How can I save maximum tax on my salary in India?
Save Income Tax on Salary
- Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections.
- Medical Expenses.
- Home Loan.
- Education Loan.
- Shares and Mutual Funds.
- Long Term Capital Gains.
- Sale of Equity Shares.
- Donations.
How can we save tax for salary above 20 lakhs Quora?
How to save income tax when a salary is more than 20 lakhs per annum – Quora. Apart from the standard rebate of Rs 1.5 Lakhs U/S 80 C, you can look at contributing Rs 50,000 to NPS on your own every year, this contribution to NPS is eligible for an extra rebate upto RS 50,000 every year over and above 80C rebate.
How can I effectively save tax with a salary of 15 LPA in India?
1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)
- Unit Linked Insurance Plans (ULIPs)
- Pension or Annuity Plans from Life Insurance Companies.
- Public Provident Fund (PPF) & Employee Provident Fund (EPF)
- New Pension Scheme Tier-I Account.
- Senior Citizen Savings Scheme.
How can a salaried person save tax?
10 Tax Saving Options for Salaried Employees
- Employee Provident Fund. Employee Provident Fund is one of the most popular ways of tax saving for salaried people.
- Public Provident Fund.
- Equity Linked Savings Scheme.
- Life Insurance.
- ULIPs.
- Rental Accommodation.
- National Pension Scheme.
- Health Insurance.
How should I structure my salary to save tax?
Best Salary Structure to Save Income Tax
- Exemptions u/s sec (10)
- House rent allowance.
- Leave travel allowance.
- Mobile/telephone allowance.
- Books and periodicals allowance.
- Children Education Allowance.
- Medical allowance and medical reimbursement.
- Uniform allowance.
How can we save tax for salary above 25 lakhs Quora?
Just change 5\% to 10\% for Income more than 250000. Try to get maximum exemptions/ rebates/deductions allowable as per IT act. Invest your surplus funds in long term SIP’s of good performing Mutual funds and high performing/stable stocks with the aim of booking profit only after retirement.
Is 15lpa a good salary?
Further, if you are fairly young and have no ailments, 15 lakhs per annum is considered a good salary by Indian standards.
How can we save tax for salary above 14 lakhs Quora?
If you do not wish to pay tax on the salary of Rs. 14 lakhs, invest in PPF (or 80CC) investments) and donate everything in excess of Rs. 6.5 lakhs to the PM’s National National Relief Fund. It allows 100\% rebate on the amount donated without limit.
How much can I invest under the 15 LPA to zero?
Consult a tax practitioner for long term tax & investment planning. With 15 LPA, tax can never be down to zero not even hypothetical :). For starters, 80C has cap of 1.5 lacs. So any amount you invest more 1.5 lacs under 80C will be ignored.
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?