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How can I save my income tax in India on salary 2021 22?

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How can I save my income tax in India on salary 2021 22?

8 Ways to Save Income Tax Under Section 80C

  1. Life Insurance. Life Insurance does not only provide full life coverage, but it is also the best way to save Taxes.
  2. ULIP’s.
  3. Mutual Funds.
  4. Tax Saving Fixed Deposit.
  5. SCSS or Senior Citizens Savings Scheme.
  6. Provident Fund.
  7. National Saving Certificates.

How can I save tax on 7 lakhs?

If you earn an annual salary up to Rs. 7.75 lakh, here’s how you can pay zero tax

  1. Highlights.
  2. People earning up to Rs. 5 lakh are now exempt from paying tax.
  3. Salaried individuals earning up to Rs. 7.75 lakh can also pay zero tax.
  4. To reduce taxable income to Rs. 5 lakh, invest fully in Sections 80C, 80D, 80CCD(1B), 80TTA.
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Which tax regime is better for 12 lakhs?

Old vs New Tax regime: For annual income up to Rs 12.5 Lakhs

Annual Income of Rs.12,50,000 (with exemption)
Annual Income 1250000
Income tax slab Tax Rate Tax (Rs.)
Up to Rs.2,50,000 0 0
250001 – 500000 5 12500

What are the income tax rules for NRI?

An NRI can claim a standard deduction of 30\%, deduct property taxes, and benefit from an interest deduction of a home loan. The NRI is also allowed a deduction for principal repayment under Section 80C. Stamp duty and registration charges paid on purchasing a property can also be claimed under Section 80C.

How can I save tax on 21 22?

Salaried employee? These payments, investments and incomes will give you tax benefits in 2021 (Top 10 List)

  1. Income from House Property.
  2. Payments for LIC premium, provident fund, PPF, Pension schemes.
  3. Payments for Central Government Pension scheme.
  4. Payment for health insurance premium.

How can I save tax on FY 2021-22?

Section 80C limit of Rs 1.5 lakh exhausted? Here is how you can still save more tax for FY 2021-22

  1. NPS Account – Avail tax benefit under Section 80CCD(1B)
  2. Health insurance premium – Avail tax benefit under Section 80 D.
  3. Paying Rent – Avail tax benefit under Section 80GG.
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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.

What is the full form of TDS?

Tax Deducted at Source (TDS)

How can I save tax on 20 lakhs?

How can NRI save tax in India?

Let’s look at five ways to save on the tax you have to pay.

  1. Make the Most of Your Deductions. Many of the basic deductions that resident Indians are entitled to are not available to you as a non-resident Indian.
  2. Apply for a PAN Card.
  3. Maintain Your NRI Status.
  4. Take Advantage of Provisions.
  5. Pay and Claim Home Loan Interest.

What is proof of NRI status?

Proof of NRI Status – Copy of valid visa/ work permit / Overseas Resident Card. Address Proof – The address on the document must be the same as the address mentioned in the application form.

How to reduce income tax in India under Section 80C?

You can learn about how to reduce income tax in India under Section 80C by investing in various instruments. If you are willing to assume the risk factor, you can choose to opt for investment tools of the stock market, such as ELSS (Equity Linked Savings Scheme).

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What is the standard T&C for home loan in India?

Standard T&C Apply. Tax Saving is the best options for investment like Section 80C offers Rs. 1.5 lakhs, tax saving mutual funds ELSS, PPF, NPS, 80CCD & 80D. Section 80D also offers for investments Rs. 75,000 and section 24 claims deduction up to Rs. 2 lakh for the interest on the home loan.

How to save tax in India on salary through house rent allowance?

The total deductions on income tax are calculated against the minimum value of the following conditions – Rent payment of up to ₹5,000 per month. 25\% of the gross total income. Total rent minus 10\% of basic salary. Thus, you can learn about how to save tax in India on salary through house rent allowance by keeping in mind the above-stated points.

How to save tax on agricultural income in India?

Any income generated from agricultural activities is exempted from tax under the Indian Income Tax Act. This is done to boost the agricultural sector. Any rent from agricultural land, income from products or from farm buildings is not taxed. Under section 80C, the government has introduced the PPF Accounts to save on taxes.