Question: How Is Tax Saving Calculated?

How can I save tax if I earn 15 lakh?

These can be: deductions under section 80C for maximum of Rs 1.5 lakh by investing in specified financial instruments, under section 80D for health insurance premium paid for self, spouse, dependent children and parents, under section 80TTA for maximum up to Rs 10,000 on the interest received from savings account held ….

How much tax do I pay on 10 lakhs?

Income between Rs 7.5 lakh and Rs 10 lakh will be taxed at 15 per cent. Income between Rs 10 lakh and Rs 12.5 lakh will be taxed at 20 per cent. Income earning between Rs 12.5 lakh and Rs 15 lakh will be taxed at 25 per cent. Income above Rs 15 lakh will continue to be taxed at 30 per cent.

How can I save tax if I earn 10 lakhs?

There are possible components for tax deductions which can help you save taxes:Annuity Plans.Child Tuition Fees.Employee National Pensions Scheme (NPS)Equity Linked Savings Scheme Investment.Fixed Deposits.Housing Loan Interest.Interest on Saving Account Deposits.Interest on the loan is taken for Residential House.More items…

What is the formula to calculate taxable income?

Your Adjusted Gross Income (AGI) is then calculated by subtracting the adjustments from your total income. Your AGI is the next step in figuring out your taxable income. You then subtract certain deductions from your AGI. The resulting amount is taxable income on which your taxes are calculated.

How do I calculate my gross income?

To determine gross monthly income from salary, individuals can divide their salary by 12 for the months in the year.Gross income per month = Annual salary / 12.Gross income per month = Hourly pay x (Hours per week x 52) / 12.Gross income = Gross revenue – Cost of goods sold.

What is the income tax slab for 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Rs. 7,50,001 to Rs. 10,00,00020%15%Rs. 10,00,001 to Rs. 12,50,00030%20%Rs. 12,50,001 to Rs. 15,00,00030%25%Above Rs. 15,00,00030%30%3 more rows

How do you find your monthly take home pay?

If you know your salary, exemptions, filing status, and other withholdings, you can figure out how much you’ll bring home per month.First, figure out your after-tax income. … Then, figure out your other payroll deductions. … Finally, subtract your taxes and deductions from your gross pay. … An example.

How do I calculate my salary?

How to Calculate Your Income Tax in 5 stepsStep 1: Calculate your gross income. First, write down your annual gross salary you get. … Step 2 – Arrive at your net taxable income by removing deductions. … Step 3: Arriving at your net taxable income. … STEP 4 – Calculate Your Taxes. … Step 5: Consolidate your net tax.

Can I save tax more than 1.5 lakh?

The most popular avenue for tax-saving is section 80C of the Income Tax Act. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount.

How do you calculate income tax for the financial year 2020 21?

The tax liability will be Rs 12,000. The total tax liability in the new tax regime comes out to be Rs 1,99,500 ( 0+12,500+25,000+37,500+ 50,000+62,500+12,000)….S. No.Income slabsIncome tax rate (%)2Between Rs 2,50,001 and Rs 5 lakh5%3Between Rs 5,00,001 and Rs 7.5 lakh10%4Between Rs 7,50,001 and Rs 10 lakh15%4 more rows•Oct 23, 2020

Is tax slab increased to 5 lakhs?

Budget 2019 presented by Nirmala Sitharaman in the Parliament, kept the personal income tax rates and slabs changes as announced in the Interim Budget 2019 unchanged. This meant that those having taxable income of up to Rs 5 lakh will not have to pay tax for FY 2019-20.

How much I can save in income tax?

Section 80C of the Income Tax allows tax exemption of up to Rs. 1.5 lakhs per annum (meaning you can save up to Rs. 45,000 on tax per year). Fixed deposits, PPF, ULIP and ELSS are some of the more popular 80C investments, though there are plenty of other options too.

What is 80c in income tax 2020 21?

Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens. Section 80DD: ₹ 75,000 for disabled dependent or ₹1,25,000 for severely disabled dependent….Income Tax SlabTax RateTax Payable10,00,000 and above30%1,50,0002 more rows•Mar 11, 2020

Can I invest more than 1.5 lakhs in 80c?

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act.

How can I save tax?

All You Need to Know About Saving Income TaxMake investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.Buy Medical Insurance & claim a deduction up to Rs. … Claim deduction upto Rs 50,000 on Home Loan Interest under Section 80EE.