ITR Filing 2022 Income Tax Calculator: As earnings increase, tax liability also increases, but if tax planning is done smartly, then tax liability can be reduced, but also zero.
ITR Filing 2022: The date for filing income tax return is near. Penalty may be imposed for not filing the return by July 31. As the income increases, the tax liability also increases. But, if the planning is right, then tax can be saved even at higher salary brackets (How to save tax). If your salary is more than Rs 10 lakh per annum, then you have to pay a hefty tax. But, you have a great way to save tax. Planning is necessary for this. Even if you fall in the annual salary bracket of Rs 10.5 lakh, not even 1 rupee will go to you as tax. Understand how…
Tax will not have to be paid on salary of Rs 10.5 lakh
First of all- Savings and expenses have to be kept in this way so that you can take advantage of the tax exemption available on it.
Suppose your salary is Rs 10,50,000, and your age is less than 60 years, that means you will fall in 30% slab.
1- First deduct Rs.500000 as standard deduction
10,50,0000-50,000 = Rs.10,00,000
2- After this, you can save 1.5 lakh rupees under 80C. In this, you can take advantage of income tax exemption on investment in EPF, PPF, ELSS, NSC and up to Rs 1.5 lakh annually in the form of tuition fees for two children.
10,000,000-1,50,000 = Rs.8,50,000
3- If you invest up to Rs 50,000 annually in the National Pension System or NPS on your behalf, then under section 80CCD (1B) of the Income Tax Act, you get help in saving income tax separately.
8,50,000-50,0000 = Rs.8,00,000
4- If you have taken a home loan, then under section 24B of Income Tax, you can claim tax exemption on the interest of 2 lakhs.
8,00,000-2,00,000 = Rs.6,00,000
5- One can claim deduction up to Rs 25,000 for health insurance premium including cost of preventive healthcare check-up for spouse, children and yourself under Section 80D of Income Tax. Apart from this, if you buy health insurance for the parents, then you can get an additional deduction of up to Rs 50,000. The condition is that the parents should be senior citizens.
6,00,000-75,000 = Rs.5,25,000
6- Under Section 80G of Income Tax, you can claim tax deduction on the amount given in the form of donation or donation to organizations. Suppose you made a donation of Rs 25,000, then you can take tax exemption on it. However, you will have to submit documents to confirm the donation or donation. A stamped receipt should be received from the institution to which you donate or donate. This will be the proof of donation that has to be submitted at the time of tax deduction.
5,25,000-25,000 = Rs.5,00,000
7- So now you have to pay tax only on income of Rs 5 lakh and your tax liability will be Rs 12,500 (5% of 2.5 lakh). But, since the exemption is Rs 12,500, he will have to pay nil tax in the 5 lakh slab.
Total Tax Deduction = 5,00,000
Net Income = 5,00,000
Tax Liability = Rs 0
(This calculation is for illustrative purposes only. Please consult your advisor before making any investment and filing ITR)
