Income Tax Update: There is great news for income tax payers. If you are also troubled by the heavy tax on income, then now the Finance Minister has given you a very good news.
Giving information, Finance Minister Nirmala Sitharaman has told that now you will not have to pay any tax on income up to Rs 10 lakh. Yes… In Budget 2023, Nirmala Sitharaman made income up to 7 lakhs tax free, but today we will tell you about a way in which you will have to pay zero tax even on income up to 10 lakhs.
Income up to 10 lakhs will not have to pay tax
If you do tax planning wisely, you can save tax even on income up to 10 lakhs. Tax experts believe that to make income up to 10 lakh tax free, you have to opt for the old tax regime.
Government increased the scope of exemption
Let us tell you that the Finance Minister has increased the scope of exemption in basic tax in the new tax system in this year’s budget. In the budget, the Finance Minister had announced to increase this scope. At the same time, no change was made in the old tax system. Let us tell you that in the old tax system, tax saving facility is available from home loan to insurance policy.
Income up to 10 lakhs will not be taxed
According to media reports, salaried people can save tax even on income up to Rs 10 lakh, but for this it is very important to plan properly. If a taxpayer plans properly under the old tax system, then he can make income up to 10 lakhs tax free.
How to save tax?
Under section 80C of the Income Tax Act in the old tax regime, you can save Rs 1.5 lakh by investing in EPF, PPF, ELSS, NSC. After deducting this Rs 1.5 lakh, your tax liability will come down to Rs 8.5 lakh.
In what ways can you save tax?
Apart from this, you can save up to Rs 50,000 in NPS. You can save it under section 80CCD (1B). Apart from this, if you have bought a house, you can save tax up to Rs 2 lakh. At the same time, you can save tax up to Rs 25,000 by taking a medical policy. Apart from this, if your parents are senior citizens, you can get an additional deduction of up to Rs 50,000 by purchasing health insurance in their name.
pay zero tax
Further, as per the provisions of the Income Tax Act, the tax on income of Rs 5 lakh is Rs 12,500 (5% of Rs 2.5 lakh). In such a situation, a rebate of Rs 12500 is available under Income Tax Section 87A, because by taking advantage of all the deductions, you have also come in the slab of 5 lakhs and you will have to pay zero tax.
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