How To Save Tax: Even if your salary is one lakh rupees every month, you do not need to pay 1 rupee tax. However, from 1 lakh a month i.e. 12 lakh rupees a year, you come under 30 percent tax.
Tax Calculator: The new financial year will start from 1 April. Earlier on February 1, Finance Minister Nirmala Sitharaman will present the budget for the financial year 2023-24 (FY 2023-24). Like every time, the job profession has a lot of expectations from this budget. But if right now your salary is one lakh rupees a month and you are trying to save tax, then you can save tax by the calculation given here. Let’s know how?
How can you save tax?
With the money saved from tax saving, you can invest for the future of the family or child. We are talking about your salary and tax. Yes, even if your salary is Rs 1 lakh per month, you do not need to pay Rs 1 tax. However, from 1 lakh a month i.e. 12 lakh rupees a year, you come under 30 percent tax. But here you understand the tax saving fund of chartered accountant Ashish Mishra-
This is the complete calculation
1. Every company gives salary to the employees in two parts. In some companies, both the parts of salary are called Part-A and Part-B. Whereas, in some it is called Part-1 and Part-2. Part-A or Part-1 salary is taxable income, Part-B or Part-2 salary is not taxable. On a salary of 12 lakhs, your income in Part-B will be Rs 2 lakhs. In this way your taxable income has come down to Rs 10 lakh.
2. Now deduct Rs 50,000 given as standard deduction. Now after deducting these, your taxable income has come down to Rs 9.50 lakh.
3. Under Section 80C of Income Tax, you can save up to Rs 1.5 lakh. In this, you can claim tuition fee, LIC (LIC), PPF (PPF), mutual fund (ELSS), EPF (EPF) or principal amount of home loan etc. In this way the taxable income came down to 8 lakhs.
4. Under section 24B of Income Tax, a deduction of two lakh is available on the interest of home loan. You can also claim this and get tax exemption. In this way, now your taxable income has come down to Rs.6 lakh.
5. For zero tax, you have to invest 50 thousand rupees in National Pension System (NPS) under 80CCD (1B). Thus, the taxable salary came down to Rs 5.5 lakh.
6. Under Section 80D of Income Tax, you can claim health insurance for your family and parents separately. You can claim a premium of up to Rs 25,000 for your family. For senior citizens, this limit is 50 thousand. In this way, both the premiums together come to Rs 75,000 and your taxable income comes down to Rs 4.75 lakh.
On income from Rs 2.5 lakh to Rs 4.75 lakh, there is a tax of Rs 11250 at the rate of 5 percent. But there is a tax exemption of up to Rs 12,500 from the Ministry of Finance. In this way your tax liability becomes zero.
