How to reduce income tax in India? - KamilTaylan.blog
19 June 2022 19:58

How to reduce income tax in India?

32 Easy Ways to Save Income Tax in 2021

  1. Tax Deduction In Case of Availing A Home Loan:
  2. Income Through Savings Account Interest:
  3. Income Through NRE Account Interest:
  4. Money Received from Life Insurance Policy:
  5. Scholarship for Education:
  6. Amount Received From Sold Shares or Sold Equity Mutual Funds:

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.

How can I save tax on 10 lakhs?

Tax savings scheme under Section 80C, NPS under Section 80CCD(1b), education or house loans, and even insurance premiums can help you achieve the goal of zero tax in a given year if your annual salary is less than Rs 10 lakh per year.

What is the best way to save tax in India?

Below-enlisted are the 7 best tax saving options other than Sec 80C.

  1. National Pension Scheme (NPS)
  2. Interest on education loan (Section 80E)
  3. Rajiv Gandhi Equity Savings Scheme (Section 80CG)
  4. Home Loans.
  5. House rent allowance (Section 80GG)
  6. Health Insurance (Section 80D)
  7. Medical treatment under Sec 80DDB.

How can I save maximum tax on my salary?

15 Tips to Save Income Tax on Salary

  1. House Rent Allowance (HRA)
  2. Leave Travel Allowance (LTA)
  3. Employee Contribution to Provident Fund (PF)
  4. Standard Deduction.
  5. Professional Tax.
  6. Exemption of Leave Encashment.
  7. Exemption Under Section 89(1)
  8. Exemption from the Receipt Upon Opting for Voluntary Retirement.

How can I save tax on my salary above 30 lakhs?

Tax exemptions can be availed by investing in the following tools:

  1. Senior Citizen Savings Scheme (SCSS)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Pension Scheme (NPS)
  4. Public Provident Fund (PPF)
  5. National Pension Scheme (NPS)

What income is tax free?

As per income tax laws, filing income tax returns is mandatory for individuals whose total income during the financial year exceeds the exemption limit of more than the gross total income of ₹2,50,000.

How can I save tax if I earn 7 lakh?

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.

How can I save tax if I earn 15 lakh?

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 can I save tax if I earn 20 lakh?

Donations – Section 80G of the Income Tax Act also allows you to avail tax saving on 20L income for making donations to charities, NGOs and government-backed relief funds. The amounts donated to such organizations are entirely exempted from tax. Others – Section 80TTA allows you to avail deduction up to Rs.

How can a salaried employee avoid taxes?

Top 10 Tax Saving Options for Salaried in 2020

  1. Employees’ Provident Fund (EPF)
  2. Public Provident Fund (PPF)
  3. ELSS.
  4. NPS.
  5. Tax Saving FD.
  6. Life Insurance Premium.
  7. HRA.
  8. LTC.

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.

What income is tax free in India?

Income tax exemption limit is up to Rs 2,50,000 for Individuals , HUF below 60 years aged and NRIs. An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Which country is tax free?

Bahamas doesn’t charge any income tax to its residents. Endowed with breathtaking beaches and a fast grwoing economy, Bahamas is one of the most livable nations in the world. The no income tax policy is the cherry on the cake.

Which state has highest taxes in India?

Own tax revenue list

No. State/UT 2016-17
All-states 9129.1
Non-Special Category
1 Andhra Pradesh 441.8
2 Bihar 237.4

Which countries have no taxes?

Bermuda, Monaco, the Bahamas, and the United Arab Emirates (UAE) are four countries that do not have personal income taxes. If you renounce your U.S. citizenship, you may end up paying a tax penalty called an expatriation tax.

Is tax-free in Dubai?

The UAE does not levy a tax on income. There is, therefore, no need for an income tax return in the UAE as there is no applicable individual tax within the country. The same also applies to freelancers and self-employed individuals who are residents of the Emirates.

Does Dubai have income tax?

The UAE does not levy income tax on individuals. However, it levies corporate tax on oil companies and foreign banks. Excise tax is levied on specific goods which are typically harmful to human health or the environment.

Related Posts