Income Tax Update: There is great news for income taxpayers. If you’re additionally troubled by the heavy tax on income, then now the Finance Minister has given you excellent information. Giving info, Finance Minister Nirmala Sitharaman has told that now you’ll not need to pay any income tax up to Rs 10 lakh.
Income Tax Update: There is nice information for income taxpayers. If you’re additionally troubled by the heavy tax on income, then now the Finance Minister has given you very good information. Giving info, Finance Minister Nirmala Sitharaman has advised that now you’ll not need to pay any income tax as much as Rs 10 lakh. Yes… In Budget 2023, Nirmala Sitharaman made an income of as much as 7 lakhs tax-free, however as we speak we’ll let you know about such a technique, through which you’ll have to pay zero tax even on income as much as 10 lakhs.
Will not have to pay tax on income up to 10 lakhs
If you do tax planning correctly, it can save you tax even on income as much as 10 lakhs. Tax experts consider that to make income as much as 10 lakhs tax-free, it’s a must to go for the old tax regime.
The government increased the scope of the exemption
Let us let you know that on this year’s price range, the Finance Minister has elevated the scope of exemption of fundamental tax within the new tax regime. In the price range, the Finance Minister had introduced to extend this scope. At the identical time, no change was made within the outdated tax system. Let us let you know that within the outdated tax system, a tax-saving facility is obtainable from a home loan to insurance coverage.
Income up to 10 lakhs will not be taxed
According to media reports, salaried people can save tax even on income as much as Rs 10 lakh, however for this it is vitally essential to plan correctly. If any taxpayer plans correctly underneath the outdated tax system, he could make income as much as 10 lakhs tax-free.
How to save tax?
Under section 80C of the Income Tax Act within the outdated tax regime, it can save you Rs 1.5 lakh by investing in EPF, PPF, ELSS, and NSC. After deducting this Rs 1.5 lakh, your tax legal responsibility will come down to Rs 8.5 lakh.
In what ways can you save how much tax?
Apart from this, it can save you as much as Rs 50,000 in NPS. You can save this underneath section 80CCD (1B). Apart from this, when you’ve got taken a house, then it can save you tax as much as Rs 2 lakh. At the identical time, by taking medical coverage, it can save you tax as much as Rs 25,000. Apart from this, in case your mother and father are senior residents, then you will get a further deduction of as much as Rs 50,000 by buying health insurance of their title.
Will have to pay zero tax
Further, as per the provisions of the Income Tax Act, the tax on income of Rs 5 lakh is Rs 12,500 (5% of Rs 2.5 lakh). In such a scenario, a rebate of Rs 12500 is obtainable underneath Income Tax Section 87A, as a result by benefiting from all of the deductions, you could have additionally come within the slab of 5 lakhs and you’ll have to pay zero tax.
