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Income Tax: Rs 1 tax will not have to be paid on the earning of 10 lakhs, this is the formula

Income Tax Saving: As a common man runs his house after earning a month’s income, even after that he has to pay tax. If your annual salary package is Rs 10 lakh and you are paying a large part of your earnings as tax, then be careful. Let me tell you that if paying tax is right then you can be proved wrong. Not only this, even if your salary package is Rs 10.5 lakh, you will not have to pay Re 1 as tax.

Understand like this, how will you save your tax

    • If your salary is Rs 10.5 lakh. First of all, subtract 50 thousand given from the government as standard deduction. In this way your taxable income is now Rs 10 lakh.
    • Now you can claim Rs 1.5 lakh under 80C. In this, you can claim children’s tuition fee, PPF, LIC, EPF, Mutual Fund (ELSS), principal of home loan etc. In this way, your taxable income here is Rs 8.5 lakh.
    • You have to invest 50 thousand under National Pension System (NPS) under 80CCD(1B) to make tax zero (0) on salary of 10.5 lakhs. In this way your taxable salary has come down to Rs.8 lakh.
    • Now under Section 24-B of Income Tax, you can claim tax exemption on home loan interest of Rs 2 lakh. In this way, now your taxable income has come down to Rs 6 lakh.
    • Under Section 80-D of Income Tax, you can claim the premium of Medical Health Insurance of Rs.25 thousand for your family (wife and children). Apart from this, senior citizens can claim 50 thousand for the health insurance premium paid for the parents. After claiming total health insurance premium of 75 thousand, your taxable income has come down to 5.25 lakhs.
    • You have to donate 25 thousand rupees to any organization or trust to bring your taxable income to 5 lakhs. You can claim it under Section 80-G of Income Tax. On donating 25 thousand, your taxable income came down to Rs 5 lakh.
    • Now your taxable income has reached Rs 5 lakh. On an income of Rs 2.5 to 5 lakh, your tax becomes Rs 12,500 at the rate of 5%. There is an exemption on this from the government side. In this case you will not have to pay tax.

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