Income Tax New Slab: The Income Tax Department has issued a new slab for tax payers. In which it is told how much tax will have to be paid on the salary. So let us know about this new slab in detail-
The financial year ends on 31st March and the new financial year starts from 1st April. Now you have to file your income tax return. The last date to file income tax from the Income Tax Department is 31st July 2023. Soon you will get Form-16 from the office and will have to file ITR by 31st July.
But if you too are in tension regarding tax money, then this news will definitely give you relief. Let us help you in planning for tax saving.
Understand here, how can you save tax?
Before filing ITR, you should ensure that in which schemes you have invested for your family? Today, many investment options are available in the market, from mutual funds to FD.
Today we will talk about your salary and taxes. Even if your salary is Rs 12 lakh, you do not need to pay Rs 1 tax.
Planning is necessary
To save tax, it is important for you to plan properly. For this you can also take advice from an expert. If your company has deducted your tax for any reason. So by filing ITR you can get back the extra money deducted. On the basis of salary of Rs 12 lakh, you come under 30 percent tax under the old tax regime.
Actually, there is a liability of 30 percent on annual income of more than Rs 10 lakh. For those with annual income of Rs 12 lakh or more, it would be better to opt for the old tax regime. Let’s see the complete calculation…
This is the complete mathematics
1. Every company gives salary to its employees in 2 parts. In some companies it is called Part-A and Part-B. At some places it is called Part-1 and Part-2.
Tax has to be paid on Part-A or Part-1 salary. Generally, on a salary of Rs 12 lakh, Rs 2 lakh is kept in Part-B or Part-2. In this way your taxable income reduced to Rs 10 lakh.
2. After this, subtract Rs 50 thousand given by the Finance Ministry as standard deduction. After deducting these, your taxable income reduced to Rs 9.50 lakh.
3. Under Section 80C of Income Tax, you can claim savings up to Rs 1.5 lakh. In this you can claim tuition fees, LIC, PPF, Mutual Fund (ELSS), EPF or home loan principal amount etc. Now your taxable income has reduced to Rs 8 lakh.
4. Under Section 24B of Income Tax, you get a rebate of Rs 2 lakh on home loan interest. In this way your taxable income reduced to Rs 6 lakh.
5. After this, you will have to invest Rs 50 thousand in National Pension System (NPS) under 80CCD (1B) to bring taxable income to zero (0). Here the taxable salary reduced to Rs 5.5 lakh annually.
6. Under Section 80D of Income Tax, you can claim health insurance premium for children, wife and parents. Premium up to Rs 25 thousand can be claimed for child and wife.
If your parents are senior citizens then you can claim Rs 50 thousand as premium. After deducting these two, your taxable income reduced to Rs 4.75 lakh.
There is 5 percent tax on income between Rs 2.5 lakh to Rs 4.75 lakh. According to this, the tax on Rs 2.25 lakh is Rs 11250. But the Finance Ministry gives rebate on tax up to Rs 12500. In this way your tax liability became zero even on salary of Rs 12 lakh.
