How much tax do I pay on 2 lakhs?
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How much tax do I pay on 2 lakhs?
The Union Budget 2019-20 has proposed full tax rebate for income up to ₹ 5 lakhs u/s 87A. Nil. ₹12,500 + 10\% of Income exceeding ₹500,000….FAQs.
| Individuals aged below 60years | |
|---|---|
| Income | Tax Rate |
| Upto ₹ 2,50,000 | Nil. |
| ₹ 2,50,001 to ₹ 5,00,000 | 5\% |
| ₹ 5,00,001 to ₹ 10,00,000 | ₹ 12,500 + 20\% of Income exceeding ₹ 500,000. |
What tax will I pay on 2.5 lakhs?
Tax rate for individuals (below 60 years) and HUFs:
| Tax Slabs | Tax Rates |
|---|---|
| Income up to Rs.2.5 lakhs | NIL |
| Income between Rs.2.5 lakhs and Rs.5 lakhs | 10\% of amount exceeding Rs.2.5 lakhs |
| Income between Rs.5 lakhs to Rs.10 lakhs | 20\% of amount exceeding Rs.5 lakhs |
| Income above Rs.10 lakhs | 30\% of amount exceeding Rs.10 lakhs |
What is the tax on 1.5 lakh?
The maximum limit for this section is Rs 1.5 lakh….Income Tax slabs and rates for resident or non-resident individual taxpayer.
| Taxable Income | Tax Rate |
|---|---|
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,001 to Rs 5,00,000 | 5\% |
| Rs. 5,00,001 to Rs. 10,00,000 | 20\% |
| Above Rs. 10,00,001 | 30\% |
How much tax will be deducted from my salary?
How to calculate TDS on Salary?
| Income Tax Slab | TDS Deductions | Tax Payable |
|---|---|---|
| Up to Rs.2.5 lakhs | NIL | NIL |
| Rs.2.5 lakhs to Rs.5 lakhs | 5\% of (Rs.5,00,000-Rs.2,50,000) | Rs.12,500 |
| Rs.5 lakhs to Rs. 6.33 lakhs | 20\% of (Rs.6,33,000-Rs.5,00,000) | Rs.26,600 |
How can I avoid paying tax on my salary?
Save Income Tax on Salary
- Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections.
- Medical Expenses.
- Home Loan.
- Education Loan.
- Shares and Mutual Funds.
- Long Term Capital Gains.
- Sale of Equity Shares.
- Donations.
What percentage of salary goes to taxes?
TOTAL TAX 34.75\%
| AverageTax rate | Total Tax | |
|---|---|---|
| Federal Personal Income Tax | 17\% | $34,000 |
| FICA | 7.65\% | $15,300 |
| State & Local Income Taxes | 10.1\% | $20,200 |
| Property Tax | 1.3\% | $2,652 |
What is tax free salary?
Tax-free is used to describe income on which you do not have to pay tax.
Is basic salary taxable?
BASIC SALARY It is vital to decide how much of your CTC should make up the basic salary, because it is fully taxable. If the basic is too high, your tax liability will shoot up. Other components of salary exemptions, such as the HRA and Provident Fund benefits, are linked to basic pay.