How can I save my income tax upto 12 lakhs?

1. 1) Standard Deduction of Rs. ...
2. 2) Profession Tax of Rs. ...
3. 3) Investment in 80C for taking full benefit of 1,50,000: ...
4. 4) Investment in National Pension Scheme up to Rs. ...
5. 5) Deduction of NPS contribution by employer under section 80CCD(2) up to Rs. ...
6. 6) Home Loan Interest and House Rent Allowance Rs.

1. Deduct Rs.50,000 as the standard tax deduction. ...
2. Now, you can start your savings by first investing in instruments that offer rebates under Section 80C of the Income Tax Act.

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.

1. Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections. ...
2. Medical Expenses. ...
3. Home Loan. ...
4. Education Loan. ...
5. Shares and Mutual Funds. ...
6. Long Term Capital Gains. ...
7. Sale of Equity Shares. ...
8. Donations.

How do rich save taxes in India?

What is maximum tax saving?

The most popular tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act, Section 80C includes various investments and expenses you can claim deductions on – up to the limit of Rs. 1.5 lakh in a financial year.

Can I deposit 15 lakhs in my account?

Cash deposits in bank accounts: CBDT has made it mandatory for a bank or a cooperative bank to report cash deposits aggregating to Rs 10 lakh or more during a financial year, in one or more accounts (other than a current account and time deposit) of a person.

How can I reduce my taxable income 2021?

How can I save tax on 20 lakhs?

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.

Is fixed salary in hand salary?

The fixed amount paid to the employee is known as the basic salary. This is the amount that is arrived at before any deductions, increments, bonuses, or allowances. The basic salary would remain the same, unlike other aspects of the CTC. The basic salary is the in-hand salary.

How much tax do I pay on 13 LPA?

While individuals with an annual salary income of Rs 13 lakh and above will pay Rs 1.43 lakh tax under the proposed tax structure; in the old regime, they would have paid a tax of Rs 1.48 lakh, thereby saving Rs 5,200, a source said.

Is CTC is take home salary?

To put it in simpler terms, CTC is a company's spending on hiring and sustaining the services of an employee. CTC is considered a variable pay as it varies based on various factors and thus when the CTC varies, the take-home salary or net salary of the employee varies.

How can I save more tax?

What income is tax free?

Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes. Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.

How much tax do I pay on 12 lakhs Quora?

If you are earning Rs 12 lakhs annually, you will be paying Income Tax about Rs 2 Lakhs. In addition to same, if there is lower TDS Interest will be payable if Advance Taxes are not paid. Please note, in case of Business Income, your net profit after expenses is taxable.

How can I save tax on 7 lakhs?

Which business is tax free in India?

Income from farming and agriculture is tax free. Agriculture income is exempted under section 10(1) of Income Tax Act. Even income from activities such as poultry and cattle rearing is considered as agricultural income.

How can a single person save on taxes?

How can I save my income tax without investment?

What is limit of income tax in India?

₹5,00,001 - ₹ 7,50,000. ₹12500 + 10% of total income exceeding ₹5,00,000. ₹12500 + 20% of total income exceeding ₹5,00,000. ₹7,50,001 - ₹ 10,00,000. ₹37500 + 15% of total income exceeding ₹7,50,000.