How much I can invest to save income tax?

How much should I invest to save tax?

Investment options under Sec 80C

Investment Returns Lock-in Period
Public Provident Fund (PPF) 7% to 8% 15 years
National Savings Certificate 7% to 8% 5 years
National Pension System (NPS) 12% to 14% Till Retirement
ELSS Funds 15% to 18% 3 years

How much do I need to invest to save 50000 taxes?

You can further save tax by investing additional Rs 50,000 in NPS. Do keep in mind that this deduction is available over and above the tax benefit available under section 80C. Thus, you can save tax by investing up to Rs 2 lakh in a financial year -Rs 1.5 lakh under section 80C and Rs 50,000 under Section 80CCD(1b).

How much should I invest to save tax on 10000?

For the current financial year, i.e., FY2018-19 for every Rs 10,000 invested in instruments specified under Section 80C, you are likely to save Rs 520 (inclusive of cess) for the income tax slab rate of 5 per cent.

How can I save maximum tax on my salary?

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.
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What income is tax free?

Applicable for all individual tax payers:

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 regimes. Rebate under section 87A is not available for NRIs and Hindu Undivided Families (HUF)

How can I legally not pay taxes?

If you want to avoid paying taxes, you’ll need to make your tax deductions equal to or greater than your income. For example, using the case where the IRS interactive tax assistant calculated a standard tax deduction of $24,800 if you and your spouse earned $24,000 that tax year, you will pay nothing in taxes.

How much tax do I pay on 50 lakhs?

50 Lakhs but does not exceed Rs. 1 crore, the taxpayers have to pay a surcharge at the rate of 10% on the income tax computed. *Here total income means the net income after all possible deductions or the taxable income. (Calculate your taxes here.)

How can I save tax on 2020 21?

Tips for Saving Tax in FY 2020-21

  1. Invest in Equity-Linked Saving Scheme (ELSS)
  2. Invest in the National Pension Scheme.
  3. Invest in Sukanya Samriddhi Yojna.
  4. Know When to Opt for the New Tax Regime.

How can I save tax in 2020?

Here’s a list of tax-saving options for salaried employees.

  1. Leave Travel Allowance: …
  2. When HRA is Part of Salary: …
  3. When HRA is Not a Part of Salary: …
  4. Amount Received from Gratuity: …
  5. Coupons for Food: …
  6. Standard Deduction: …
  7. Company Leased Car: …
  8. Expenses for Telephone and Internet:
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How can I save my 46800 tax?

An equity-linked savings scheme or ELSS is a tax-saving investment under Section 80C of the Income Tax Act, 1961. By investing in ELSS, you can claim a tax rebate of up to Rs 1,50,000 a year and save up to Rs 46,800 a year in taxes. An ELSS is the only kind of mutual fund eligible for tax benefits under Section 80C.

How can I save tax on 8 lakhs?

Income tax saving guide: These 10 ways can help you save up to Rs 8 Lakh

  1. Tax Deduction on Home Loan Interest. …
  2. Claim Principal Amount of Home Loan. …
  3. LIC premium, PF, PPF, Pension Scheme. …
  4. Central Government Pension Scheme. …
  5. Health Insurance Premium. …
  6. Medical and maintenance expenses of disabled dependents.