How can I save tax in 2021?
How can I save tax in 2021?
Here’s a list of popular investment options to save tax under section 80C.
- Public Provident Fund.
- National Pension Scheme.
- Premium Paid for Life Insurance policy.
- National Savings Certificate.
- Equity Linked Savings Scheme.
- Home loan’s principal amount.
- Fixed deposit for a duration of five years.
- Sukanya Samariddhi account.
What is 80C investment?
80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax …
Which investment comes under 80D?
Section 80C – Deductions on Investments.
How can I save tax on 20 lakhs?
But the good news is you can still manage to pay Zero (NIL) income tax on salary of up to Rs 20 lakhs (Salary here means cost to company)….Tax Deductions
- Section 80C Exemption – 1,50,000.
- NPS 80CCD(1B) Tax Exemption – 50,000.
- Medical Insurance (Self & Parents) – 60,000.
- Interest on Education Loan – 50,000.
Which is best 80C investment?
Best Tax-Saving Investments Under Section 80C
| Investment | Returns | Lock-in Period |
|---|---|---|
| Public Provident Fund (PPF) | 7%-8% | 15 years |
| Sukanya Samriddhi Yojana | 8.5% | N/A |
| National Savings Certificate | 7%-8% | 5 years |
| Senior Citizen Saving Scheme | 8.7% | 5 years |
Is proof required for 80D?
There is no proof or documentation needed to avail 80D deductions.
How can I save tax beyond 1.5 lakhs?
Recommended ways of saving taxes under Sec 80C,80D and 80EE
- Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
- Buy Medical Insurance, maximum deduction allowed is Rs.
- Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.
What is the new income tax slab for 2020-21?
Income tax slab rate applicable for New Tax regime – FY 2020-21.
| Income Tax Slab | New Regime Income Tax Slab Rates FY 2020-21 (Applicable for All Individuals & HUF) |
|---|---|
| Rs. 5.00 lakhs- Rs 7.5 Lakhs | 10% |
| Rs 7.5 lakhs – Rs 10.00 Lakhs | 15% |
| Rs 10.00 lakhs – Rs. 12.50 Lakhs | 20% |
| Rs. 12.5 lakhs- Rs. 15.00 Lakhs | 25% |
How much tax do I pay on 25 lakhs?
For a salary ranging between Rs 20 lakhs and Rs 25 lakhs, the applicable tax rate under the new tax regime would be the highest, that is 30%. Incidentally, this is the same tax slab that your salary would fall under according to the existing tax regime, that is 30%.
How much tax do I pay on 15 lakhs?
Frequently Asked Questions ( FAQ’s )
| Income Slab | Applicable Tax Rate |
|---|---|
| Above Rs 7.5 lakh and up to Rs 10 lakh | 15% |
| Above Rs 10 lakh and up to Rs 12.5 lakh | 20% |
| Above Rs 12.5 lakh and up to Rs 15 lakh | 25% |
| Above Rs 15 lakh | 30% |
What are the tax saving options?
ELSS is one of the best tax saving investment option. ELSS are mutual funds which invest in equity and related instruments. ELSS comes with lock in period of 3 years. The investment in ELSS is very easy.
What is the best investment for tax purposes?
Often, in the world of investing, the best strategy for winning in the long run is to avoid losing in the short run. And the quickest way to lose in taxable accounts is by investing in mutual funds that produce the most in taxes.
What is a tax Saver plan?
The Tax Saver Benefit ( TSB ) plan is designed to save tax dollars when you pay for IRS eligible expenses. When you elect to set aside salary contributions into one or both of the TSB accounts, heathcare or dependent care, the contributions are not subject to federal, state, local or FICA taxes. This can mean substantial savings.
What are tax friendly investments?
A tax-free fund is an investment with dividends that aren’t taxed. These types of tax-free income funds are usually called municipal bond funds. If you’re in a higher tax bracket, a tax-free income fund which contains tax-free municipal bonds from your state can be a wise investment choice.