|Annual income||Tax for salaried individuals below the age of 60 years|
|Up to ₹2.5 lakh||Nil|
|₹2.5 lakh – ₹5 lakh||5% of total income exceeding ₹2.5 lakh|
|₹5 lakh - ₹10 lakh||₹12,500 + 20% of total income exceeding ₹5 lakh|
|Above ₹10 lakh||₹1,12,500 + 30% of total income exceeding ₹10 lakh|
What do you feel when you hear the word ‘tax’?
Irritated? Bored? Scared? Confused?
What if you found out that you need not pay huge taxes and can reduce it to the absolute minimum, even zero in some cases? Exciting, right?
So, learn how you can increase your take home salary by picking tax-saving investments suited to you. It’s like giving yourself a raise!
Most of us are aware about the instruments eligible for tax saving under Section 80C (with an increased exemption limit of ₹1.5 lakh) and under Sections 80CCE, 80D, 80E, 80G, 24(b), etc., of Income Tax Act, 1961 but a large proportion of us do not utilise the benefits fully.
Just by investing in options available under Sections 80C and 80D, you would be able to raise your take home by saving on tax.
While you are planning for your taxes, it is advisable to choose instruments that would not only save tax, but would also provide the long term benefits in terms of savings or protection, in line with your financial goals.
Here are the applicable tax slabs
4% health and education cess is applicable on income tax and applicable surcharge. The above rates does not include surcharge that is applied on income above ₹50 lakh and health and education cess.