Frequent question: How can I save my maximum tax in India?

How can I save maximum tax on my salary in India?

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 reduce my income tax in India?

So be sure to claim all the tax deductions and benefits that apply to you. Section 80C of the Income Tax Act can reduce your gross income by Rs 1.5 lakhs. There are a bunch of other deductions under Section 80 such as 80D, 80E, 80GG, 80U etc. that reduce your tax liability.

How can I reduce my taxable income?

How to Reduce Taxable Income

  1. Contribute significant amounts to retirement savings plans.
  2. Participate in employer sponsored savings accounts for child care and healthcare.
  3. Pay attention to tax credits like the child tax credit and the retirement savings contributions credit.
  4. Tax-loss harvest investments.
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How can I save tax if I earn 20 lakh?

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.

Can I save tax more than 1.5 lakh?

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.

How can I save tax on 12 lakhs?

Tax Deductions under Section 80(C)

  1. Investments in PPF (Public Provident Fund)
  2. Investments in EPF (Employee Provident Fund)
  3. Investments in ELSS funds (Equity-Linked Savings Scheme)
  4. Investments in NSC (National Savings Certificates)
  5. Payment of premiums against Life Insurance Policies.

How can I save tax on 15 lakhs?

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 much tax you can save in India?

A popular tax deduction is the Section 80C of the Income Tax Act, 1961. You are eligible for tax deduction up to a maximum of Rs 1.5 lakh a year, under Section 80C on suitable investments and expenses.

How can I reduce a large tax bill?

7 Best Tips to Lower Your Tax Bill from TurboTax Tax Experts

  1. Take advantage of tax credits. …
  2. Save for retirement. …
  3. Contribute to your HSA. …
  4. Setup a college savings fund for your kids. …
  5. Make charitable contributions. …
  6. Harvest investment losses. …
  7. Maximize your business expenses.
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How can I invest to save tax?

The easy tax saving investments that should be known by all the taxpayers of India are:

  1. 5 years Bank Fixed Deposit.
  2. Public Provident Fund (PPF)
  3. National Savings Certificate (NSC)
  4. Equity Linked Saving Schemes (ELSS)
  5. Unit Linked Investment Plan (ULIP)
  6. National Pension Scheme.
  7. Life Insurance.

How much tax do I pay on 25 lakhs?

Assessing your Tax Slab

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%. Incidentally, this is the same tax slab that your salary would fall under according to the existing tax regime, that is 30%.

How much tax do I pay on 15 lakhs?

Frequently Asked Questions ( FAQ’s )

Income Slab Applicable Tax Rate
Above Rs 7.5 lakh and up to Rs 10 lakh 15%
Above Rs 10 lakh and up to Rs 12.5 lakh 20%
Above Rs 12.5 lakh and up to Rs 15 lakh 25%
Above Rs 15 lakh 30%