Income Tax: Not a single rupee tax will have to be paid even on earnings of Rs 7 lakh or Rs 10 lakh...


About one month is left for the end of the current financial year. In such a situation, this time is considered very important for tax savings. At present, through tax planning (tax saving tips), you can pay zero tax even if you have an income of Rs 10 lakh. Let us tell you, under the old tax regime, income up to Rs 5 lakh, and under the new tax regime, income up to Rs 7.50 lakh is tax-free.


This is how zero tax will be made on income of Rs 10 lakh
Tax exemption is given by the government under the old tax regime. Using these you can make income up to Rs 10 lakh tax-free.

You can avail tax exemption of Rs 50,000 through a standard deduction. Now your taxable income remains Rs 9.50 lakh.
You can avail tax deduction of Rs 1.5 lakh under Section 80C by investing in schemes like EPF, PPF, ELSS, and NSC. Now an income of Rs 8 lakh comes under the ambit of tax.

On investing in NPS, you can avail tax exemption of Rs 50 50,000 under Section 80CCD (1B). Now the income has come down to Rs 7.5 lakh.
Under Income Tax Section 24B, a tax exemption of Rs 2 lakh is available on home loans. Now your income is reduced to Rs 5.5 lakh.

Under Section 80D of Income Tax, you can get tax exemption of up to Rs 25,000 on taking medical insurance for your family and up to Rs 50,000 on getting health insurance for your parents. Now your income has reached Rs 500,000 lakh. In the old tax regime, income of Rs 5 lakh is tax-free due to the exemption of Section 87A.


There will be no exemption on the new tax regime
If you choose the new tax regime, you will not be able to avail the benefits of exemptions like Section 80C which were available in the old tax regime. You will get the benefit of a standard deduction of Rs 50,000 only. In such a situation, if the income is up to Rs 10 lakh, the old tax regime is considered appropriate for tax saving.

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