Income Tax News: For those who pay income taxes, there is good news. The Finance Minister has now provided you with excellent news if the high income tax is causing you any concern. According to information provided, Finance Minister Nirmala Sitharaman, you are no longer required to pay taxes on income up to Rs 10 lakh. Indeed. Nirmala Sitharaman made income up to 7 lakhs tax free in the Budget of 2023, but today we’ll tell you about another way that will save you money on taxes on income up to 10 lakhs.
Tax Saving Opportunity
You can save taxes on income up to Rs. 10 lakhs if you plan your taxes well. According to tax experts, you must choose the previous tax system if you want to earn up to Rs. 10 lakhs tax-free.
Consistency in Previous Tax Structure
Let us inform you that the Finance Minister has expanded the base tax exemption under the new tax regime in this year’s budget. The Finance Minister had stated that this scope would be expanded in the budget. The previous tax structure remained unchanged at the same time. Allow us to inform you that under the previous tax structure, tax-saving options ranged from house loans to insurance policies.
Tax Planning for Salaried Individuals
Media reports claim that salaried individuals can save taxes on income as high as Rs 10 lakh, but careful planning is essential to achieve this. Under the previous tax system, a taxpayer could earn up to 10 lakhs tax-free if they planned ahead. In the previous tax system, you could have saved Rs 1.5 lakh by investing in NSC, ELSS, PPF, and EPF under section 80C of the Income Tax Act. You will owe Rs 8.5 lakh in taxes after this Rs 1.5 lakh is subtracted.
Home Purchase Benefits
In addition, you have the option to save up to Rs 50,000 in NPS. This falls under section 80CCD (1B) for saving. In addition, you can save up to Rs 2 lakh in taxes if you have purchased a home. A medical policy can also help you save up to Rs 25,000 in taxes. In addition, you can receive a further deduction of up to Rs 50,000 if you buy health insurance in your parents’ names and they are senior citizens.
Tax-Free Status for Income Up to Rs 10 Lakhs
Furthermore, the Income Tax Act’s provisions state that the tax on income exceeding Rs 5 lakh is Rs 12,500 (5% of Rs 2.5 lakh). Because you have fallen into the 5 lakhs tax slab by utilising all of the deductions, you are eligible for a refund of Rs 12500 under Income Tax Section 87A, meaning you will not be required to pay any taxes.
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