Tax Savings: There is little time left for the announcement of the annual budget for the financial year 2023-24 by the central government, while two months are left for the end of the current financial year.
Tax Savings: There is little time left for the announcement of the annual budget for the financial year 2023-24 by the central government, while two months are left for the end of the current financial year. In such a situation, HR from the offices have started asking their employees for information about their investments, while small businessmen have started doing their financial planning through ITR. During this time there are many taxpayers who invest in the last time of the financial year and find ways to save money.
Know what are the rules for paying tax
In this article, we are going to tell you those ways of investment, through which you will not have to pay a single penny on income up to Rs 10 lakh and your income can be completely tax free. According to the existing rules, taxpayers will get Rs 5 lakh. Up to Rs. 2.5 lakhs, no tax has to be paid on income up to Rs. 2.5 lakhs per annum.
According to the rules of income tax, no money has to be paid up to the first 2.5 lakhs, while there is a provision of 5% tax on the income of 2.5-5 lakhs, although 20% on the income of 5 to 10 lakhs and more than 10 lakhs. But income tax of 30 percent tax has to be paid. In such a situation, if your annual income is Rs 10 lakh, then you come under the purview of 20% tax slab. However, by choosing the right way of investment, you can get complete tax exemption.
50 thousand rupees will be saved from standard deduction
According to the income tax rules, every taxpayer gets a rebate of Rs 50,000 under the standard deduction, after which your earning will be Rs 9.5 lakh. Whereas under the 80C rule of income tax, you can get a rebate of up to Rs 1.5 lakh by showing the investment of the savings scheme. can do. It includes savings schemes like EPF, PPF, ELSS, NSC. Not only this, if you have children, then you can also get tax exemption in the form of tuition fees. After deducting this, your amount of Rs 8 lakh will be saved in the tax net.
50 thousand will be saved from National Pension System
If you separately invest up to 50 thousand rupees annually in the National Pension System, then under section 80C D (1B) you will save an additional 50 thousand rupees. After this, only Rs 7.5 lakh will be saved in the tax net. At present, health policy is very important and if you take a health policy, you will get tax savings of up to Rs 25,000. It is necessary to have the names of your wife and child in it.
On the other hand, if you have also added the name of your senior citizen parents, then you can get an additional savings of Rs 50,000. Due to this, the tax amount is saved only Rs 6.75 lakh.
Up to 2 lakh discount is available on home loan
Apart from this, if you have taken a home loan, then you are exempted from paying tax on the interest of two lakhs under section 24B of income tax on tax saving, after deducting which your income comes within Rs. 5 lakhs and income tax According to the rule of Rs. 12,500 (5% of Rs. 2.5 lakh) has to be given on earning of five lakh rupees. You can also save this amount by investing it under section 87A of Income Tax and in this way you will not have to pay a single penny as tax on income up to Rs 10 lakh.
