Tax Savings Tips: There are only a few days left for the financial year 2021-22 (FY 2021-22) to end. In such a situation, if you have not been able to plan for tax saving yet, then we help you. As a responsible citizen, it is your duty to pay tax to the government.
New Delhi: Tax Savings Tips: There are only a few days left for the financial year 2021-22 (FY 2021-22) to end. In such a situation, if you have not been able to plan for tax saving yet, then we help you. As a responsible citizen, it is your duty to pay tax to the government. But the more tax you can save, the better it is for you.
Invest in other things
You can invest the money saved from tax liability in other things as well. Here today we will tell you that even if your salary is Rs 12 lakh, you do not need to pay any kind of tax. How can you save tax on 12 lakhs, next we will tell you its complete calculation.
Thorough planning needed
You have to do complete planning for tax saving. Even if your employer company has deducted tax money from your salary, you can still get your deducted money back by filing ITR on the basis of this calculation. Let’s see step by step complete calculation…
On the salary of 12 lakhs, you come in the slab of 30 percent. Because there is a liability of 30 percent on annual income above 10 lakhs.
This is full math
1. First of all, subtract 50 thousand given by the government as standard deduction. In this way now your taxable income is Rs 11.50 lakh.
2. Now you can claim Rs 1.5 lakh under 80C. In this, you can claim children’s tuition fee, PPF, LIC, EPF, Mutual Fund (ELSS), principal of home loan etc. In this way, your taxable income here is Rs 10 lakh.
3. You have to invest 50 thousand under National Pension System (NPS) under 80CCD (1B) to make tax zero (0) on salary of 12 lakhs. In this way your taxable salary has come down to Rs 9.5 lakh.
4. Now you can get an additional deduction of up to Rs 1.5 lakh on interest under Section 24B of Income Tax and Rs 1.5 lakh under Section 80EEA of Income Tax. In this way, you can claim a total deduction of 3.5 lakhs on the interest of the home loan. The provision of additional exemption of 1.5 lakh was made in the budget of 2019 for affordable homes.
What is the condition
Your home loan must be approved by a bank or NBFC between April 1, 2019, and March 31, 2022, to be eligible for tax exemption on interest under Section 80EEA. Also, the stamp duty of the property should not exceed Rs 45 lakh. The home buyer should also not have any other residential property. In this way, after claiming Rs 3.5 lakh, your taxable income has come down to Rs 6 lakh in one stroke.
5. Under Section 80D of Income Tax, you can claim a premium of 25 thousand rupees medical health insurance for your family (wife and children). Apart from this, senior citizens can claim 50 thousand for health insurance premium paid for parents. Apart from this, health check-up is also allowed up to a limit of Rs 5000. After claiming total health insurance premium of 75 thousand, your taxable income has come down to 5.25 lakhs.
6. Now you have to donate 25 thousand rupees to any organization or trust to bring your taxable income to 5 lakhs. You can claim it under section 80G of Income Tax. On donating 25 thousand, your taxable income came down to Rs 5 lakh.
You have to pay zero tax
Now your taxable income is Rs 5 lakh. On the income of 2.5 to 5 lakh rupees, at the rate of 5 percent, your tax becomes Rs 12,500. But there is an exemption on this from the government side. In this case your tax liability becomes zero.
