How Can I Save My Income Tax In 9 Lakhs?

How is tax calculated?

Tax is charged as a percentage of your income.

The percentage that you pay depends on the amount of your income.

The first part of your income, up to a certain amount, is taxed at 20%.

This is known as the standard rate of tax and the amount that it applies to is known as the standard rate tax band..

What is the income tax on a salary of Rs 5 lakhs per annum?

What are the different tax slabs and tax rates under the new tax regime?Total Income per annumTax RatesUpto Rs. 2.5 lakhNilAbove Rs. 2.5 lakh up to Rs. 5 lakh5%Above Rs. 5 lakh up to Rs. 7.50 lakh10%Above Rs. 7.50 lakh up to Rs. 10 lakh15%3 more rows

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.

What is the lowest tax threshold?

Income Tax rates and bandsBandTaxable incomeTax ratePersonal AllowanceUp to £12,5000%Basic rate£12,501 to £50,00020%Higher rate£50,001 to £150,00040%Additional rateover £150,00045%

How can I save my tax on 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 tax on 9 lakhs?

Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. 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.”

What will be the income tax for 8 lakhs?

Without Exemptions/Deductions, the tax calculator shows those earning Rs 8 lakh annual income will have to pay Rs 75400 as tax as per the new regime. The tax payable under the old regime without exemptions and deductions will be Rs 46,800. Thus the total tax benefit as per new regime would be Rs 28,600.

What is the best salary structure to save tax?

Below mentioned are 8 highly recommended salary components in your CTC to reduce the outgo of income tax from your salary.House Rent Allowance (HRA):Least of the following is exempt: … Employee Contribution to Provident Fund (EPF): EPF is a very good tax-saving and investment scheme.More items…

How do I calculate GST tax?

GST Calculation Formula:Add GST: GST Amount = (Original Cost x GST%)/100. Net Price = Original Cost + GST Amount.Remove GST: GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}] Net Price = Original Cost – GST Amount.

How can I save tax if I earn 20 lakh?

These deductions include: Section 80C deduction of maximum Rs 1.5 lakh, section 80D deduction for health insurance premiums paid and other deductions for which a taxpayer is eligible, section 80TTA deduction for interest received from a saving account held with bank or post office etc.

How much tax do I pay on 10 lakhs?

Income Tax Slabs for individuals below 60 years – Old and New Tax RegimesIncome Tax SlabNewIncomeOld10%Rs. 5 lakhs to Rs. 7.5 lakhs20%15%Rs. 7.5 lakhs to Rs. 10 lakhs20%20%Rs. 10 lakhs to Rs. 12.5 lakhs30%3 more rows•Jun 10, 2020

How much tax should I pay for 7 lakhs?

1.5 lakh under Section 80C of the Income Tax Act….Step 5:Tax Calculation – ParticularsExisting (in Rs. per annum)Post Interim Budget (In Rs. per annum)Gross salary7,75,0007,75,000Less: Standard deduction(40,000)(50,000)Net salary7,35,0007,25,000Income from other sources10,00010,00014 more rows

How much tax do I pay on 15 lakhs?

New income tax slabs 2020, income up to ₹5 lakh exemptIncomePrevious Tax RateNew Tax Rate₹5 lakh to ₹7.5 lakh20%10%₹7.5 lakh to ₹10 lakh20%15%₹10 lakh to ₹12.5 lakh30%20%₹12.5 lakh to ₹15 lakh30%25%3 more rows•Feb 4, 2020

Can I deposit 10 lakhs in bank?

If you cash deposit more than Rs. 10 lakhs from your savings bank account – Bank will report to Income Tax authority. If you do fixed deposit more than Rs. 10 lakhs in a financial year – Bank will report to Income Tax authority.

How can I reduce my taxable income?

As of right now, here are 15 ways to reduce how much you owe for the 2019 tax year:Contribute to a Retirement Account.Open a Health Savings Account.Use Your Side Hustle to Claim Business Deductions.Claim a Home Office Deduction.Write Off Business Travel Expenses, Even While on Vacation.More items…•

What percentage is tax?

you pay 0% on earnings up to £12,500* for 2020-21. then you pay 20% on anything you earn between £12,501 and £50,000. you’ll pay 40% Income Tax on earnings between £50,001 to £150,000. if you earn £150,001 and over you pay 45% tax.

How does tax work on a second job?

No, you don’t pay extra tax for having a second job. You will pay the same amount of tax on your income whether you have one single job or multiple jobs. So if you earn $1000 a week from a single employer, or from multiple employers, the tax you need to pay will be the same.

How can I save tax on 15 lakhs?

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 …

Is 5 lakhs a good salary in India?

If you talking about 5 lakhs per month, then definitely a handsome salary but if you are talking abou 5 lake per annum then also it is decent salary for start. Various factors are involved in it like your place of living, your standard of living, family size, your expenditures, your investments, your savings etc.

Is 15 LPA good salary?

Further, if you are fairly young and have no ailments, 15 lakhs per annum is considered a good salary by Indian standards.

Is 30 lakhs a good salary in India?

Every fresher coming to search for a job mostly gets paid among 4 to 5 lakhs per annum in India except NIT and IIT grads who generally get paid 7 to 8 lakhs per annum. … But after almost 5 to 6 years of experience and with skills a person in India can get 25 lakhs to 30 lakhs per annum.