How can I get tax exempt from my salary?
Such basic exemption of Rs 2.5 lakhs is for your overall income for the year. You cannot claim this against various incomes separately. Therefore, you must sum up all your income during the year including the salary income from both your employers and then claim a basic exemption of Rs 2.5 lakhs from such income.
How do investors avoid taxes?
The easy tax saving investments that should be known by all the taxpayers of India are:
- 5 years Bank Fixed Deposit.
- Public Provident Fund (PPF)
- National Savings Certificate (NSC)
- Equity Linked Saving Schemes (ELSS)
- Unit Linked Investment Plan (ULIP)
- National Pension Scheme.
- Life Insurance.
How does a salaried person save tax?
Tax Saving FD A tax saving Fixed Deposit or FD is quite popular as one of the tax saving options for salaried individuals. It is a type of FD with which help in availing of income tax deductions for salaried employees on your investments of a maximum of Rs. 1,50,000.
How do I get maximum tax benefit?
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.
How can I save tax if my salary is under 10 lakhs?
How can I save tax if my salary is under 10 lakhs? 1 Exhaust your 80 C limit of Rs 1,50,000 2 Reduce your medical expenditure. Invest in health insurance and avail the deduction 3 Claim home loan interest 4 You will get an additional tax benefit if you are an NPS contributor 5 Avail the standard deduction if you are a salaried person More
What is the income tax for 8 lakhs in India?
If your salary is Rs 8 lakh per annum and you opt for the new income tax India regime, your income tax will be Rs 46,800. This will be without any exemptions/deductions. You can save Rs 28,600 more in comparison to the old regime.
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 Kartik Aaryan is saving tax this tax season?
As tax season approaches, Kartik was looking at his tax burden and figuring out ways to save tax. He had exhausted the limit under Section 80C (investment in tax saving instruments), Section 80D (investment in health insurance), and taken the benefit of sections like 80G (donations) and 80TTA (deduction for savings account interest).