Can I Save Tax More Than 1.5 Lakh?

Can I invest more than 1.5 lakhs in 80c?

Tax saving mutual fund schemes or equity linked saving scheme (ELSS) are one of the most preferred options to save tax for most individuals.

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act..

Is PF part of 1.5 lakh investment?

Employees Provident Fund (EPF) and Public Provident Fund (PPF) along with other investments like life insurance premiums, ELSS, tuition fees of children, NSC, home loan principal, tax saving FDs etc all put together can get a deduction of only up to ₹1.5 lakh in the current financial year.

What if I invest more than 1.5 lakhs in PPF?

16. What if I deposit more than 1.5 lakh in PPF? The maximum deposit limit in a PPF account is of Rs 1.5 lakhs and any amount beyond this limit will be rejected at the time of transfer.

Can a person have 2 PPF account?

The PPF rules allow the same individual to open another account in the name of a minor but it does not allow to hold more than one PPF account in one’s own name. While only one PPF account is allowed to be opened in one’s name, there could be a possibility that one ends up holding multiple PPF accounts.

Why was 80c removed?

Experts say the new tax regime may not be suitable for everyone. … “Those committed to long-term saving and investing via Section 80C may be discouraged and this may likely demotivate taxpayers to opt for tax-saving linked investing, like in ELSS and PPF.”

How can I save tax beyond 1.5 lakhs?

1. Section 80CCD: National Pension Scheme. Beyond the contribution of Rs 1.5 lakh under Section 80C, you can invest an additional Rs 50,000 in NPS which can be claimed as tax deduction under Section 80CCD. This gives you the option of claiming tax deduction of up to Rs 2 lakh every year by investing in NPS.

How much tax do I pay on 10 lakhs?

Income between Rs 10 lakh and Rs 12.5 lakh will be taxed at 20 per cent. Income earning between Rs 12.5 lakh and Rs 15 lakh will be taxed at 25 per cent. Income above Rs 15 lakh will continue to be taxed at 30 per cent. 0% for income upto 5 lakh.

What are the different ways to save tax?

Below-enlisted are the 7 best tax saving options other than Sec 80C.National Pension Scheme (NPS)Interest on education loan (Section 80E)Rajiv Gandhi Equity Savings Scheme (Section 80CG)Home Loans.House rent allowance (Section 80GG)Health Insurance (Section 80D)Medical treatment under Sec 80DDB.More items…•

How can I save tax when my 80c is full?

1) Tax saving with NPS under Section 80CCD (1B): Taxpayers can save additional tax by investing up to ₹ 50,000 in NPS. This is over and above the benefit, they can claim on contributions under Section 80c. They also have the option of utilizing NPS for the ₹ 1.5 lakh limit of Section 80c.

How is tax calculated?

Tax is charged as a percentage of your income. The percentage that you pay depends on the amount of your income. The first part of your income, up to a certain amount, is taxed at 20%. This is known as the standard rate of tax and the amount that it applies to is known as the standard rate tax band.

What is annual income?

Annual income is the total income that you earn over one year. Depending on the data that is required to determine your annual income, you may base your income on either a calendar year or a fiscal year.

What is salary TDS rate?

20%The TDS to be deducted by dividing the estimated tax liability of the employee for the financial year by the number of months of his employment under the particular employer. However, if you do not have PAN, TDS shall be deducted at the rate of 20% (excluding education cess and higher education cess).

What is the maximum limit for 80c?

Rs 1.5 lakhAs per the current income tax laws, the total investment amount under sections 80C, 80CCC and 80CCD (1) cannot exceed Rs 1.5 lakh for FY 2019-20. If your employer has made a contribution to National Pension System (NPS) on your behalf, then, you can claim deduction under section 80CCD(2).

How can I save tax on 20 lakhs?

These deductions include: Section 80C deduction of maximum Rs 1.5 lakh, section 80D deduction for health insurance premiums paid and other deductions for which a taxpayer is eligible, section 80TTA deduction for interest received from a saving account held with bank or post office etc.

How do I calculate my salary?

Income tax calculation for the Salaried Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as telephone bills reimbursement, leave travel allowance.

Is 25 lakhs a good salary in India?

Every fresher coming to search for a job mostly gets paid among 4 to 5 lakhs per annum in India except NIT and IIT grads who generally get paid 7 to 8 lakhs per annum. … But after almost 5 to 6 years of experience and with skills a person in India can get 25 lakhs to 30 lakhs per annum.

How much tax do I pay on 15 lakhs?

Also ReadTaxable Income Slab (In Rupees)Existing Tax RatesNew Tax Rates5-7.5 lakh20%10%7.5-10 lakh20%15%10-12.5 lakh30%20%12.5-15 lakh30%25%4 more rows•Feb 3, 2020

Is 80c removed?

Most of the commonly available deductions such as section 80C (investments made in PF, NPS etc.), 80D (payment of medical insurance premium), standard deduction of Rs 50,000 etc. have been proposed to be removed but here is one tax benefit that can still be claimed by the individuals under the proposed new tax regime.