Tax Saving Tips: On earning up to 15 lakhs, you can save tax, where and how, know in detail!

 | 
iyu

If your annual income is Rs 15 lakh then you can save tax money. You can avail of deduction on various expenses of your investments and in the end, your taxable income will be very less. But this will happen only when you have invested your earnings. Without investment, you cannot take advantage of deduction or tax deduction. The government has made several sections to give the benefit of tax deduction to the people. Its purpose is that people should invest, save and take advantage of tax keeping in view their future. The benefit of the deduction is available to only those people who duly file an income tax return. Therefore, even if your earnings are 15 lakhs, then you can take advantage of a tax deduction.

yut

Here we will talk about 5 major investments that can be taken advantage of to take advantage of tax deductions. This includes standard deduction, investment under section 80C, medical insurance under section 80D, NPS, and home loan interest. If these five things are included in your investment, then you can save tax on annual income up to 15 lakhs.

In which item will the tax be saved?

  • Firstly, you can directly save Rs 50,000 in the standard deduction or the standard deduction. The standard deduction is the amount that is deducted from your income. After that, the remaining amount is calculated according to the tax slab on that tax. So in the standard deduction, you get a chance to save Rs 50,000.
  • You can save up to Rs 1.5 lakh tax on your investments under section 80C. This includes term insurance, 5-year tax saver FD and senior citizen savings scheme, etc. If you have invested in these schemes, you can save 1.5 lakh tax. That is, 1.5 lakh will be directly reduced from the total taxable income. After saving from standard deduction and section 80C, the taxable income comes to 13 lakhs.
  • One can save up to Rs 25,000 on medical insurance premiums under section 80D. Another Rs 25,000 can be saved if insurance is taken for the parents. In this way, a savings of Rs 50,000 can be made. One can save tax up to Rs 50,000 in NPS. A total of Rs 1 lakh can be saved on both these items. Now the taxable income remains at 12 lakhs.
  • After this, a tax exemption of Rs 2 lakh can be taken on the interest of the home loan. In this way, the taxable income becomes Rs 10 lakh.
  • If you spend on the treatment or care of a disabled dependent in your family, you can get a tax exemption of Rs 1,25,000 under section 80DD. In this way, Rs 8,75,000 will be saved in taxable income. One can save up to Rs 100,000 for the treatment of a specified disease under section 80DDB. In this way, now only Rs 7,75,000 will come under the tax net. If you have taken an education loan for the education of your children, then you can save up to Rs 1.5 lakh on it. After this, the taxable income will be Rs 6,25,000.

ytu

  • You can also get tax exemption on donations. The government has created some funds in which by donating you can get tax exemptions up to 100%. If you have donated Rs 1 lakh to any fund, then you can take a tax exemption of Rs 1 lakh. In this way, the taxable income will be Rs 5,25,000. According to the new tax system, you will have to pay 10 percent tax on this amount. Accordingly, you will get Rs 52,000 as tax. 4 percent cess on this will be Rs 2080. You will have to pay a total tax of Rs 54,080.