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Zero tax on income of 10 lakhs. Understand the calculation of both new and old systems, Otherwise 82 thousand rupees will be taxed

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New Tax Slabs: Those earning above 7 lakhs, know how they can save tax

New slabs of Income Tax have been issued and the time to pay the tax has also come well, now in such a time whether to use the new tax system or the old tax system, there is confusion among the salary class people. Even if your salary is up to Rs 10 lakh, you can still file your income tax without paying tax.


Income tax to be paid under the old tax system.

If your salary is 10 lakh rupees and you want to pay tax according to the old tax system, then you can claim your tax in this way. In this, keep some important things in mind as follows.

Particulars Amount (Rs)
Gross salary income 10,00,000
Less: House rent allowance (HRA) exemption 2,40,000
Less: Standard deduction 50,000
Net salary income 7,10,000
Add: Interest income from savings accounts 7,000
Add: Interest income from fixed deposits 8,000
Add: Dividends from equity shares 5,000
Gross taxable income 7,30,000

 

After claiming HRA, now take advantage of the deduction under the old tax system. Which would be something like this. In this, now you will claim your investment, insurance, medical expenditure etc. Which is the best thing about this system.

Particulars Amount (Rs)
Gross taxable income 7,30,000
Less: Section 80C deduction 1,50,000
Less: Section 80D deduction 25,000
Less: Section 80CCD (1b) 50,000
Less: Section 80TTA 7,000
Net taxable income 4,98,000
Income tax payable 12,400
Less: Rebate u/s 87A 12,400
Cess on income tax amount 0
Final tax amount 0

 

In this way, under his old tax system, he paid his income tax without any additional payment even on earning Rs.10 lakh.

New Tax Filing System

If you pay this tax with the new tax system, then your tax will be something like this

Particulars Amount (Rs)
Gross salary income 10,00,000
Add: Interest income from savings accounts 7,000
Add: Interest income from fixed deposits 8,000
Add: Dividends from equity shares 5,000
Gross taxable income 10,20,000
Income tax payable 79,000
Add: Cess @ 4% 3,160
Final income tax amount 82,160

 

Experts say that investment and insurance etc. have not been given a place in the new tax system, due to which the Indian economy will suffer in the long run because most people take investment and insurance to save tax, which gives a boost to the country’s economy. And a deposit capital also remains for the people.

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