How can I save my 30% tax?

How can I save my 30% tax?

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

• Senior Citizen Savings Scheme (SCSS)
• Sukanya Samriddhi Yojana (SSY)
• National Pension Scheme (NPS)
• Public Provident Fund (PPF)
• National Pension Scheme (NPS)

How can I save tax if I earn 20 lakh?

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 I save tax beyond 1.5 lakhs?

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 do I get maximum tax exemption?

Tax Saving Schemes

• Public Provident Fund (PPF)
• Sukanya Samriddhi Yojana (SSY)
• National Pension System (NPS)
• Employees' Provident Fund (EPF)
• Sukanya Samriddhi Yojana Interest Rate.
• National Savings Certificate.
• House Rent Allowance.
• NSC Interest Rate.

How can I save tax on my salary other than 80C?

Best 10 Tax Saving Investment Options Other Than 80C

• Tax saving with NPS under Section 80CCD (1B):
• Tax savings on Health insurance premiums under Section 80D:
• Tax savings on repayment of an Education loan under Section 80E:
• Tax savings on Interest component of Home loan under Section 24:

How can I get zero tax on 12 lakhs?

• 1) Standard Deduction of Rs.
• 2) Profession Tax of Rs.
• 3) Investment in 80C for taking full benefit of 1,50,000:
• 4) Investment in National Pension Scheme up to Rs.
• 5) Deduction of NPS contribution by employer under section 80CCD(2) up to Rs.
• 6) Home Loan Interest and House Rent Allowance Rs.

How do I reduce my tax to zero?

Suggestion to Consider for making Income Tax Zero when Income is Rs 20.41 Lakhs Per Annum

• Include all those components that are tax-free.
• For availing most of the benefits or HRA, HRA should be ideally 50% of the Basic Salary (40% HRA if an individual has rented a house in a non-metro)

What income is tax free?

If your income is below ₹2.5 lakh, you do not have to file Income Tax Returns (ITR).

Can I claim both 80C and 80D?

Section 80C offers tax deductions on different types of tax-saving investments, such as ULIP, PPF, ELSS, EPF, LIC premium, etc. Section 80D deduction is allowed for availing tax exemptions on health insurance premiums paid for self, family, & parents and expenses incurred on preventive health check-ups.

Which 80C is best?

Best Tax Saving Investments Under 80C

• ELSS (Equity Linked Saving Scheme) Lock-In: 3 years. Returns: 15-18% (Based on the last 5 years)
• Public Provident Fund (PPF) Lock-In: 15 years. Return: 8%
• Bank FDs. Lock-In: 5 Years. Returns: 6-7%
• ULIPs. Lock-In: 5 Years (Minimum) Return: 11-13% (Last 5 years)

How do I invest 80D?

Here's a list of investments for which you can claim tax deduction under this section.

• Life insurance policy premium.
• Your contribution towards Employees' Provident Fund Scheme.
• Your contribution to Public Provident Fund.
• Subscription to Sukanya Samriddhi Account Scheme.
• Subscription to National Savings Certificates.

How We Can Save TDS on salary?

However, for those earning more, following pointers could help them avoid paying excess TDS:

• Submit all investment proofs for deduction under Section 80C.
• Housing loan repayment (principal)
• Leave Travel Allowance.
• Public Provident Fund (PPF)
• Sukanya Samriddhi account.
• Benefits under Section 80EE for first-time homebuyers.

How can I save tax over 10 lakhs?

The tax-saving investments under Section 80C can further reduce taxable income by up to Rs 1.50 lakh. Another Rs 50,000 can be saved by investments in the National Pension Scheme under Section 80CCD(1b). These two deductions will bring the taxable income down to Rs 7.7 lakh per annum.04-Apr-2022

What is the trick to saving tax in India?

Here's a list of popular investment options to save tax under section 80C.

• Public Provident Fund.
• National Pension Scheme.
• Premium Paid for Life Insurance policy.
• National Savings Certificate.
• Equity Linked Savings Scheme.
• Home loan's principal amount.
• Fixed deposit for a duration of five years.
• Sukanya Samariddhi account.

Can I invest more than 1.5 lakh in 80C?

There is no legal restriction on the maximum amount invested in an ELSS, though the deduction under Section 80C is limited to Rs 1.5 lakh only.22-Nov-2021

How should I structure my salary to save tax?

House Rent Allowance (HRA) The exemption towards HRA will be allowed as least of the following: Actual HRA Received. 50% of salary (40% in case of non-metro cities) Rent Paid in excess of 10% of salary.06-May-2022

How much tax do I pay on 15 lakhs?

Income tax slabs for new and old regime

How do the rich avoid taxes?

The U.S. system taxes income. Selling stock generates income, so they avoid income as the system defines it. Meanwhile, billionaires can tap into their wealth by borrowing against it. And borrowing isn't taxable.24-Jun-2022

How much tax should I pay for 7 lakhs?

The finance minister announced that individuals with an annual income between Rs 5 lakh and Rs 7.5 lakh would pay 10% tax, and those earning Rs 7.5 lakh to Rs 10 lakh 15%. Under the old regime, with deductions, these individuals pay 20% income tax.

Is FD interest tax free?

When are you liable to pay tax on FDs? From April 2019 onwards, if the interest on FD is more than ₹40,000, then PAN users would be liable to pay 10% as tax and non-PAN users would pay 20% tax on interest earned. This interest would be deducted as TDS (tax deducted at source) at the time of credit of annual interest.

Is it mandatory to file ITR for salaried person?

As per the current income tax laws, an individual below 60 years of age is required to file ITR if his/her gross total income exceeds Rs 2.5 lakh in a financial year.03-Aug-2022

How can I save my 30% tax?