Income Tax News: For those with high salaries, especially those in the 30 lakh tax bracket, tax planning is essential. Not to mention that salaried individuals may find it very challenging to pay increased tax rates. Fortunately, it is possible to save a significant amount of money on taxes and yet support the expansion of the national economy by practicing wise financial management and tax planning.
Targeting Individuals with Incomes Over 30 Lakhs
This essay is intended for those who make over or near 30 lakhs per year. We’ll go over some of the best strategies for reducing your taxes and increasing your take-home earnings. The Indian Finance Minister releases the income tax slabs each year. Nirmala Sitharaman unveiled the Union Budget on February 1st, 2023, and it contained changes to the prior tax plan. Consequently, taxpayers have two choices with respect to the tax structure. It implies that you have the option of declaring your taxes under the new tax system or the previous one.
Wise Tax Decisions
| Annual Income | New Tax Regime (FY 2023-24) | Old Tax Regime (FY 2022-23) |
| Up to ₹2.5 lakhs | No Tax | No Tax |
| ₹2.5 lakhs – ₹5 lakhs | 5% | 5% (Rebate) |
| ₹5 lakhs – ₹7.5 lakhs | 10% + ₹12,500 | 20% + ₹12,500 |
| ₹7.5 lakhs – ₹10 lakhs | 15% + ₹37,500 | 20% + ₹12,500 |
| ₹10 lakhs – ₹12.5 lakhs | 20% + ₹75,000 | 30% + ₹1,12,500 |
| ₹12.5 lakhs – ₹15 lakhs | 25% + ₹1,25,000 | 30% + ₹1,12,500 |
| ₹15 lakhs and above | 30% + ₹1,87,500 | 30% + ₹1,12,500 |
Tax Benefits for Health Insurance
Significant deductions for health insurance premiums are available under Section 80D of the Income Tax Act. A person may receive up to ₹25,000 if they have paid health insurance premiums for themselves, their spouse, and their children. You can also be qualified for up to ₹50,000 if you are financing the health insurance of your elderly dependents or your parents. This will help you prevent having to pay a lot of money for medical bills.
Leveraging Donations
Donating to charity organisations is an additional way to reduce taxes on a high wage. You can save as much as 50% or even 100% of the allowable gift amount with this strategy.
Maximizing Tax Benefits with National Pension Scheme (NPS)
If you deduct ₹1.5 lakh under Section 80c, you can claim an extra income tax deduction of up to ₹50,000 under the National Pension Scheme.
Impact of HRA Exemptions on Taxable Income
You can rent a home and be eligible for exemptions under Income Tax Act Section 10 (13A) if your pay includes house rent allowance (HRA).
The Case for Hiring an Income Tax Expert
If you’re short on time and lack experience, you might want to consider hiring an expert in income taxes. They could assist you choose the finest tax preparation solutions and save you a significant amount of money.
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