How Can I Save Tax On 7 Lakhs?

How can I save tax if I earn 7 lakh?

Step 1: You can get a deduction of up to Rs.

1.5 lakh under Section 80C of the Income Tax Act.

You can do this by investing the entire sum into your PPF, or dividing it between your PPF, EPF, tax-saving mutual funds, and tuition fees paid for your children’s education..

How is tax calculated on salary?

How to use the Income tax calculator for FY 2020-21 (AY 2021-22)?Choose the financial year for which you want your taxes to be calculated.Select your age accordingly. … Click on ‘Go to Next Step’Enter your taxable salary i.e. salary after deducting various exemptions such as HRA, LTA, standard deduction, and so on. (More items…

How much tax should I pay for 6 lakhs?

Without Exemptions/Deductions, the tax calculator shows those earning Rs 6 lakh annual income will have to pay Rs 23400 as tax as per the new regime. The tax payable under the old regime without exemptions and deductions will be Rs 33,800. Thus the total tax benefit as per new regime would be Rs 10,400.

How can I save tax on 20 lakhs?

Tax DeductionsSection 80C Exemption – 1,50,000.NPS 80CCD(1B) Tax Exemption – 50,000.Medical Insurance (Self & Parents) – 60,000.Interest on Education Loan – 50,000.

Can I deposit 20 lakhs in bank?

10,000 for a single purpose not permissible under income tax act. your father must have to give explanation to the income tax department for depositing Rs. 20,00,000 to a savings bank account within a short period when asked for. Tax will be deposited by your father within 15th March, 2020 (if payable).

How much tax do I pay on 25000?

For the 2019 / 2020 tax year £25,000 after tax is £20,536 annually and it makes £1,711 net monthly salary. This net wage is calculated with the assumption that you are younger than 65, not married and with no pension deductions, no childcare vouchers, no student loan payment.

How much tax should I pay for 7 lakhs?

A 10 per cent tax will be charged on income between Rs 5 and 7.5 lakh, 15 per cent, 20 per cent and 25 per cent on next Rs 2.5 lakh each and 30 per cent on income above Rs 15 lakh.” Currently, annual income up to Rs 2.5 lakh is exempt from income tax.

How much tax do I pay on 7.5 lakhs?

Income between Rs 5 lakh and Rs 7.5 lakh annually will be taxed at 10 per cent. 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.

How can I save tax on 10 lakhs?

If you make right investments utilising several tax saving clauses under the Income Tax Act, you can save yourself from paying tax on your income up to Rs 10 lakh as per the new relaxations announced in Budget 2019, claim tax experts. Here’s how can do it? First, claim your revised standard deduction of Rs 50,000.

What income is tax free?

As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income up to Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh …

Is income upto 5 lakhs tax free?

Abhishek Soni, CEO, tax2win.in, a tax-filing firm says, “As per the proposals of Budget 2019, there will be no tax liability if your taxable income is Rs. 5 lakh or less. However, ITR filing is still mandatory if your income exceeds the basic exemption limit of Rs. 2.5 Lakh (if age is below 60).”

Which tax regime is better for 20 lakhs?

If the total is equivalent to or exceeds Rs 2.5 lakh, then he/she would pay the same or less tax in the existing tax regime vis-à-vis the new regime….Synopsis.ParticularsTax payable in Existing RegimeTax payable in New RegimeStandard Deduction-50,000-Income under the head salary19,50,00020,00,0008 more rows•Feb 21, 2020