ITR Filing: Pay Zero Tax On Rs 10 Lakh Yearly Income --Here's The Math
An individual's salary is taxed as per his/her income tax structure and pay bracket. However, if you judiciously use the savings instrument prescribed in the Income Tax laws, you can save a huge amount on your taxes. Here's how.
An individual's salary is taxed as per his/her income tax structure and pay bracket. However, if you judiciously use the savings instrument prescribed in the Income Tax laws, you can save a huge amount on your taxes. Here's how.
How To Pay Zero Tax On Rs 10 Lakh Annual Income
The Union Budget 2024 brought about major changes to the new tax structure, including an increase in the basic deduction from Rs 50,000 to Rs 75,000. If your yearly income is up to ₹7 lakh, you will not be subject to income tax. The good news is that even if your annual income is ₹10 lakhs, you can still reduce your overall tax liability.
PPF, EPF, and NSC benefits
Standard deduction
For income up to Rs 10 lakhs, you will have to go back to the former tax structure to take advantage of income tax benefits. Should you decide to use the former tax structure, you might deduct up to Rs 50,000 as a standard deduction. After taking Rs 50,000 out of Rs 8.5 lakh, your taxable income will be Rs 8 lakh.
Medical and health insurance policy benefits
Under Section 80D of the Income Tax, you can save up to Rs 25,000 in taxes if you have purchased a medical policy and receive an additional discount of up to Rs 50,000 if your wife, children, and yourself are all listed on the health insurance policy. Now if you deduct Rs 75,000 from Rs 8 lakh, your income will be decreased to Rs 7,25,000.