How can I save tax on my salary under 8 lakhs?

Posted on by Author

How can I save tax on my salary under 8 lakhs?

Income tax saving guide: These 10 ways can help you save up to Rs 8 Lakh

  1. Tax Deduction on Home Loan Interest.
  2. Claim Principal Amount of Home Loan.
  3. LIC premium, PF, PPF, Pension Scheme.
  4. Central Government Pension Scheme.
  5. Health Insurance Premium.
  6. Medical and maintenance expenses of disabled dependents.

What is the minimum income to not pay taxes?

The minimum income amount depends on your filing status and age. In 2021, for example, the minimum for single filing status if under age 65 is $12,550. If your income is below that threshold, you generally do not need to file a federal tax return.

READ:   What is the difference between scaffold and formwork?

What is the tax for 9 lakhs per annum?

If your taxable income is Rs 9 lakh per annum, you will fall into the tax slab of Rs 7.5 lakhs-10 lakhs. As per the new Tax rate post the budget 2020, 15\% of your taxable income is liable for a tax deduction.

What salary is tax free in India?

✅What is the amount of tax-free income? According to new and old tax regimes, an individuals income below ₹ 2.50 Lakh is exempted from tax. However, you can claim tax rebate on income upto ₹ 5 Lakh and make it tax free.

How do I work out my salary before tax?

How to calculate income before taxes

  1. Get your paycheck. To calculate your annual income before taxes, obtain a copy of your most recent paycheck.
  2. Divide your pay amount by the number of pay cycles. If you receive a monthly paycheck, multiply the amount you got paid via your last paycheck by 12.
READ:   Can you grow an avocado in just water?

What is the income tax on a salary of 8 lakhs?

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. The table below will make it clear to you. What is the income tax on a salary of Rs 10 lakh per annum?

Do I have to pay tax on invesments made under 500000?

In case you make Invesments as stated above and other deductions like Mediclaim etc. and are able to bring down your taxable income below Rs. 500000/-, there will be no tax. Hope this helps. Note: Assumption your age is below 60. Hi! Your tax liability will depend on your net taxable income.

How can I reduce my income tax if I have 10 lakhs?

If you have a salary of under 10 lakhs, you may opt for the old Income tax regime and try to lower your tax burden as much as possible by implementing the following- Reduce your medical expenditure. Invest in health insurance and avail the deduction 4. Is 10 lakhs a good salary in India?

READ:   Why does my AC compressor stop after a few seconds?

How much HRA/NPs do I need to make to avoid tax?

You are left with 8,00,000 – 2,00,000 = 6,00,000. You need a Investment/declaration of 1,00,000 (which can be HRA, insurance, NPS) only because when your taxable income becomes 5,00,000. Taxable income becomes 0 due to exemption of section 87A. ( 5\% Tax on income between 2,50,001 to 5,00,000 =12,500) which is completely exempted due to 87A rebate.