Income Tax Save: In the budget presented on July 23, Finance Minister Nirmala Sitharaman has given a big relief under the New Tax Regime by increasing the standard deduction from Rs 50,000 to Rs 75,000. In such a situation, income of Rs 7.75 lakh has become tax free. But even if your income is up to Rs 10 lakh, you can still save your tax. Know the method.
Income Tax Save: The country’s general budget (Union Budget 2024) has been presented on 23 July. In the first budget of Modi tenure 3.0, people have been given a big relief regarding income tax. In this, giving a big discount under the New Tax Regime, the Standard Deduction has been increased from Rs 50,000 to Rs 75,000. At the same time, some changes have also been made in the tax slab. That is, now the income of 7.75 lakhs has become tax free for those who choose the new tax regime. But if your annual income is Rs 10 lakh, then you can also save your income tax completely. You will not have to pay even 1 rupee as tax. Just for this you have to choose the second option. How will the income of 10 lakhs be tax free, understand the math-
This is how you will save tax on an income of 10 lakhs
– To avail income tax benefits on income up to Rs 10 lakh, you will have to switch to the old tax regime. In this, you can claim many types of deductions and save income tax on many types of income. Understand how-
– If you choose the old tax system, you get a standard deduction of up to Rs 50,000. Standard deduction is the amount that is deducted from the total income before deduction. In such a situation, the taxable income of a person earning Rs 10 lakh becomes Rs 9.50 lakh.
– If you have invested in schemes like PPF, EPF, NSC which give the benefit of 80C, then you can save tax up to Rs 1.5 lakh under 80C. In such a situation, if you subtract 1.50 lakh more from 9.50 lakh, then the taxable income will be 8 lakh rupees.
– If you invest even up to 50,000 rupees annually in NPS, then under section 80CCD (1B) you are given an extra tax exemption of Rs 50,000. In such a situation, after subtracting 50 thousand from 8 lakh, the taxable income remains 7.50 lakh rupees.
– Those who have taken a home loan, they can save up to 2 lakh rupees on its interest under section 24B of Income Tax. Now if you subtract 2 lakh rupees from 7.50 lakh, then 5.50 lakh rupees are left.
– If you have taken a medical policy, then you can save tax up to Rs 25,000 under section 80D of income tax. If your name, your wife’s name and your children’s name are also included in the health insurance, then you can get an extra exemption of up to Rs 50,000.
– In such a situation, now if you reduce Rs 75,000 from Rs 5.50 lakh, then your income will be Rs 4.75 lakh. Since there is no tax on income up to Rs 5 lakh in the old tax regime, no tax will be levied on you. In this way, you can make income up to Rs 10 lakh tax free.
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