Revenue Tax Saving: Kind-16 has been issued by the businesses. The final date for submitting ITR has been mounted by the Revenue Tax Division as July 31. In such a state of affairs, in case you are additionally pondering of paying tax on earnings of 10 lakh rupees, then you’re unsuitable.
In case your wage bundle is 10 lakh rupees and also you pay a big a part of your earnings within the type of tax, then watch out. Maybe you'd assume that there isn't any technique to save tax, in such a state of affairs, whether it is proper to pay tax, then you're unsuitable. Not solely this, even when your wage bundle is 10.5 lakh rupees, even then you'll not need to pay 1 rupee as tax. Let’s know the entire maths…
On a wage of 10.5 lakhs, you fall within the slab of 30 % tax. As a result of 30 % earnings tax is liable on annual earnings above 10 lakhs.
That is the entire maths
1. In case your wage is 10.5 lakh rupees, then initially subtract 50 thousand given by the federal government as normal deduction. On this means your taxable earnings is now Rs 10 lakh.
2. Now you'll be able to declare Rs 1.5 lakh beneath 80C. On this, you'll be able to declare youngsters’s tuition payment, PPF, LIC, EPF, Mutual Fund (ELSS), principal of residence mortgage and so on. On this means, your taxable earnings right here has been diminished to Rs 8.5 lakh.
3. It's important to make investments 50 thousand beneath Nationwide Pension System (NPS) beneath 80CCD(1B) to make tax zero (0) on wage of 10.5 lakhs. On this means your taxable wage has come right down to Rs 8 lakh.
4. Now beneath Part 24B of Revenue Tax, you'll be able to declare tax exemption on residence mortgage curiosity of Rs 2 lakh. On this means, now your taxable earnings has come right down to Rs 6 lakh.
5. Below Part 80D of Revenue Tax, you'll be able to declare a premium of 25 thousand rupees medical medical health insurance for your loved ones (spouse and kids). Other than this, senior residents can declare 50 thousand for medical health insurance premium paid for folks. After claiming complete medical health insurance premium of 75 thousand, your taxable earnings has come down to five.25 lakhs.
6. Now you need to donate 25 thousand rupees to any group or belief to convey your taxable earnings to five lakhs. You'll be able to declare it beneath Part 80G of Revenue Tax. On donating 25 thousand, your taxable earnings got here right down to Rs 5 lakh.
You'll have to pay zero tax
, now your taxable earnings has been diminished to Rs 5 lakh. On the earnings of two.5 to five lakh rupees, on the charge of 5 %, your tax turns into Rs 12,500. However there's an exemption from the federal government on this. On this case your tax legal responsibility turns into zero.