Guidelines

What is the tax on 3 lakhs?

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What is the tax on 3 lakhs?

How to Calculate Taxable Income on Salary?

Net Income Income Tax Rates
Up to Rs.3 lakhs NIL
Rs.3 lakhs to Rs.5 lakhs 5\% of (Total Income – Rs.3 lakhs)
Rs.5 lakhs to Rs.10 lakhs Rs.10,000 + 20\% of (Total income – Rs.5 lakhs)
Above Rs.10 lakhs Rs.1,10,000 + 30\% of (Total income – Rs.10 lakhs)

How much tax do I pay on 3.5 lakhs?

Individuals above 60 years:

Tax Slabs Tax Rates
Income up to Rs.3 lakhs NIL
Income between Rs.3 lakhs and Rs.5 lakhs 10\% of amount exceeding Rs.3 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
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How can a salaried person reduce tax?

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 do I get maximum tax exemption?

  1. SMALL SAVINGS SCHEMES:
  2. EMPLOYEE PROVIDENT FUND (EPF)/NATIONAL PENSION SYSTEM (NPS):
  3. LIFE INSURANCE/ANNUITY PREMIUM:
  4. TAX-SAVING MUTUAL FUNDS:
  5. BANK FIXED DEPOSITS:
  6. HOME LOAN REPAYMENT:
  7. TUITION FEE OF CHILDREN:
  8. Dividend/interest payments that can be invested in tax-saving instruments:

How should I structure my salary to save tax?

Best Salary Structure to Save Income Tax

  1. Exemptions u/s sec (10)
  2. House rent allowance.
  3. Leave travel allowance.
  4. Mobile/telephone allowance.
  5. Books and periodicals allowance.
  6. Children Education Allowance.
  7. Medical allowance and medical reimbursement.
  8. Uniform allowance.

How can we save tax more than 1.5 lakh?

Investment options under Sec 80C 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.

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What is limit of income tax in India?

₹5,00,001 – ₹ 7,50,000. ₹12500 + 10\% of total income exceeding ₹5,00,000. ₹12500 + 20\% of total income exceeding ₹5,00,000. ₹7,50,001 – ₹ 10,00,000. ₹37500 + 15\% of total income exceeding ₹7,50,000.

How can I save tax?

Income Tax

  1. House Property.
  2. Business, Professional & Freelance.
  3. Efiling Income Tax Return.
  4. Income Tax Refunds.
  5. Paying Tax Due.
  6. Salary Income.
  7. Capital Gains Income.
  8. Other income sources.

Do you have to pay tax on first 9 lakhs income?

But these tax payers have to compulsory file their returns every year. Now with this amendment in the income tax clause, you can save tax on your income up to Rs. 9.85 lakhs. In other words, you don’t have to pay any tax on the first 9.85 lakhs you are earning.

What is the additional deduction on interest on 35 lakh home loan?

This additional deduction has been given on interest for loan up to Rs 35 lakh, provided the house value doesn’t exceed Rs 50 lakh. Assuming a loan of Rs 35 lakh to be paid over 20 years, the annual deduction comes to around Rs 2.5 lakh, including the Rs 2 lakh currently available.

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What is the maximum tax exemption possible (RS) for donations?

Maximum Tax Exemption Possible (Rs.) Though 14 Lakhs sounds big amount but most people would avail only few of the above. Here is the reason: Rs 1.5 Lakhs exemption for donation: People donate for a cause and their passion/empathy and not to save taxes.

What is the standard deduction of Rs 40000?

While computing the income chargeable under the head “salary” besides other deductions, a deduction of RS 40000 or the amount of the salary, whichever is less will be allowed. The benefit of Transport allowance and medical reimbursement is withdrawn from FY 2018-19 and a flat benefit of Rs 40000/- as standard deduction is allowed to all employees