How can we save maximum tax on 15 Lac?

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How can we save maximum tax on 15 Lac?

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 can I save tax on my salary under 20 lakhs?

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.

What is the maximum investment for tax exemption?

As per this section, the investments made by the investor are eligible for tax exemption up to a maximum limit of Rs. 1, 50,000. Such investments include ELSS (Equity Linked Saving Scheme), Fixed Deposits, Life Insurance, Public Provident Fund, National Savings Scheme and Bonds.

How much tax do I pay on 15 LPA?

Income tax calculator for FY2021-22

Total income (Rs) Income tax rate
From 5,00,001 to Rs 7,50,000 10 percent
From 7,50,001 to 10,00,000 15 percent
From 10,00,001 to Rs 12,50,000 20 percent
From 12,50,001 to 15,00,000 25 percent
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How can I save maximum tax on my 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 if my salary is more than 10 lakhs?

Tax exemptions can be availed by investing in the following tools:

  1. Senior Citizen Savings Scheme (SCSS)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Pension Scheme (NPS)
  4. Public Provident Fund (PPF)
  5. National Pension Scheme (NPS)

Which tax regime is better for 20 lakhs?

Assessing your Tax Slab The new tax regime was announced in Budget 2020 and introduced new tax slabs as well as much lower tax rates than the old tax regime. For a salary ranging between Rs 20 lakhs and Rs 25 lakhs, the applicable tax rate under the new tax regime would be the highest, that is 30\%.

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How can I save tax on my salary?

What are the tax saving options?

Investment options under Sec 80C

Investment Returns Lock-in Period
ELSS Funds 15\% to 18\% 3 years
Unit Linked Insurance Plan (ULIP) Varies with Plan Chosen 5 years
Sukanya Samriddhi Yojana (SSY) 7.60\% N/A
Senior Citizen Saving Scheme (SCSS) 7.40\% 5 years

How can we save tax more than 1.5 lakh?

Investment options under Sec 80C 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.

What are the best tax saving options under Section 80C?

You must be aware that Section 80C offers a maximum deduction of up to Rs. 1,50,000. A few of the options are as follows: ELSS mutual funds are one of the best tax saving options under 80C]

What are the tax exemptions available for investments?

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The table below gives the details of all the tax exemptions available: Maximum Tax Exemption Limit (Rs.) Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA and NPS. Also includes Home Loan Principal repayment, Tuition Fees, Stamp Duty. Best Tax Saving Investments u/s 80C

How PF PF reduces the tax slab of Section 80C?

PF will be automatically considered for Section 80C investments, hence reducing the Employee contribution of 60,000 from 150000 of 80C max. Now, reducing the tax slab: 1750000 – 60000 = 1690000. This is as per financial year 2019 – 2020.

What are the investments and expenses allowed under Section 80C?

The aforementioned investments and expenses come under one umbrella of Section 80C and the maximum exemption that can be claimed under that section is Rs. 1,50,000. Apart from Section 80C, there are other sections that allow for other investments and expenses incurred by you to be claimed as deductions from taxable income. Here are a few of them: