How To Save Tax In India? (Best solution)

Here’s a list of popular investment options to save tax under section 80C.

  1. Public Provident Fund.
  2. National Pension Scheme.
  3. Premium Paid for Life Insurance policy.
  4. National Savings Certificate.
  5. Equity Linked Savings Scheme.
  6. Home loan’s principal amount.
  7. Fixed deposit for a duration of five years.
  8. Sukanya Samariddhi account.

What are some tax saving options in India?

  • Public Provident Fund (PPF) PPF is a great tax saving option as it qualifies for deduction upto Rs 1.5 Lakhs per annum under section 80C of the Income tax act.
  • National Pension Scheme (NPS) NPS is a government sponsored pension plan which is also tax efficient.
  • Premium Paid for Life Insurance policy.

How can I reduce my taxable income?

Save Income Tax on Salary

  1. Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections.
  2. Medical Expenses.
  3. Home Loan.
  4. Education Loan.
  5. Shares and Mutual Funds.
  6. Long Term Capital Gains.
  7. Sale of Equity Shares.
  8. Donations.

What are the best ways to save tax in India?

Recommended ways of saving taxes under Sec 80C,80D and 80EE

  1. Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
  2. Buy Medical Insurance, maximum deduction allowed is Rs.
  3. Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.

How can I save tax on 12 lakhs?

Tax Deductions under Section 80(C)

  1. Investments in PPF (Public Provident Fund)
  2. Investments in EPF (Employee Provident Fund)
  3. Investments in ELSS funds (Equity-Linked Savings Scheme)
  4. Investments in NSC (National Savings Certificates)
  5. Payment of premiums against Life Insurance Policies.
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How can I save tax on 10 lakhs?

Tax exemptions can be availed by investing in the following tools:

  1. Senior Citizen Savings Scheme (SCSS)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Pension Scheme (NPS)
  4. Public Provident Fund (PPF)
  5. National Pension Scheme (NPS)

How can I save tax if I earn 20 lakh?

Tax Exempted Salary Components

  1. Meal Coupons.
  2. Car Maintenance.
  3. EPF (Contribution by Employer)
  4. NPS (Contribution by Employer)
  5. Gift voucher.
  6. Mobile Phone and the Internet Bill Reimbursement.
  7. Newspaper/Journal Allowance.
  8. Children Education/Hostel Allowance.

How can a salaried person save tax?

10 Tax Saving Options for Salaried Employees

  1. Employee Provident Fund. Employee Provident Fund is one of the most popular ways of tax saving for salaried people.
  2. Public Provident Fund.
  3. Equity Linked Savings Scheme.
  4. Life Insurance.
  5. ULIPs.
  6. Rental Accommodation.
  7. National Pension Scheme.
  8. Health Insurance.

What income is tax free?

Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both tax regimes. Rebate under section 87A is not available for NRIs and Hindu Undivided Families (HUF) 4

What is the tax for 1 crore in India?

​New income tax slabs and rates Taxpayers with income between Rs 50 lakh and Rs 1 crore continue to pay 10% surcharge, between Rs 1 crore and Rs 2 crore pay 15%, between Rs 2 crore and Rs 5 crore pay 25% and those with income over Rs 5 crore pay 37%.

Can we pay zero income tax?

One easy way to pay no income tax is to have little or no taxable income. About half of the Americans who pay no income tax do so because their incomes are too low. If your income is below these levels, you won’t have to pay any income tax.

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What is the full form of TDS?

Tax Deducted at Source (TDS)

What tax will I pay on 20 lakhs?

Assessing your Tax Slab For a salary ranging between Rs 20 lakhs and Rs 25 lakhs, the applicable tax rate under the new tax regime would be the highest, that is 30%. Incidentally, this is the same tax slab that your salary would fall under according to the existing tax regime, that is 30%.

How can I save tax if I earn 15 lakh?

1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)

  1. Unit Linked Insurance Plans (ULIPs)
  2. Pension or Annuity Plans from Life Insurance Companies.
  3. Public Provident Fund (PPF) & Employee Provident Fund (EPF)
  4. New Pension Scheme Tier-I Account.
  5. Senior Citizen Savings Scheme.

How can I avoid income tax illegally in India?

Common Methods of Tax Evasion

  1. Failing to pay the due. This is the simplest way in which someone may evade taxes.
  2. Smuggling:
  3. Submitting false tax returns.
  4. Inaccurate financial statements.
  5. Using fake documents to claim exemption.
  6. Not reporting income.
  7. Bribery.
  8. Storing wealth outside the country.

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