Income Tax: There Will Be no Tax on Salary, Know This Formula immediately
Profit tax Savings: It's the season to save income tax. There will be no worry of tax if you invest in the last three months. But where to invest the money? Section 80C exemption ends everything. After this is there any good way to invest? Is absolutely fine.
Government investment course. National Pension System, or New Pension Scheme, is its name. This is such a tool. Which can give twice the tax benefit. There is a tax benefit of up to fifty thousand rupees. But investing in NPS on your own is not profitable. Now why would you be thinking this? In fact, you will get more benefits if you take NPS from the employer. Tax exemption will also be beneficial. Let's see. that how
80CCD gets more discount
By investing in NPS, you can claim income tax exemption under section 80CCD of Income Tax. There are two sub-sections 80CCD(1) and 80CCD(2). There is also an additional sub section in 80CCD(1B). Tax exemption of Rs 1.5 lakh can be availed on 80CCD(1) and Rs 50 thousand on 80CCD(1B). Apart from the exemption of Rs 2 lakh under 80CCD(2), income tax exemption can also be claimed.
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How to avail more tax benefits?
Employer gives on investment in NPS. This is from NPS employee benefits. In this the employer demands tax exemption on your investment in NPS. You can invest 10 percent of dearness allowance and basic salary in NPS. Central employees also get tax exemption. Who invests 14% in NPS. Many companies provide NPS. You can invest in NPS by talking to the company employees. Its benefit will be that it will provide additional tax exemption.
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How to calculate tax?
Suppose your salary is Rs 10 lakh. This salary will become taxable income. But remove Rs 1.5 lakh of 80C and Rs 50 thousand of 80CCD(1B) from the total salary. After this also reduce the standard production by Rs 50 thousand. Now the taxable income will be Rs 7.50 lakh. You can save tax up to Rs 2.50 lakh through Uniform Allowance, Broadband Allowance, Conveyance Allowance and Entertainment Allowance. If your company has made reimbursement in salary. The taxable income after claiming the return will be Rs 5 lakh.
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there will be no income tax on you
Your income tax will be zero. You can invest Rs 50 thousand. If investing in NPS through employer. As mentioned in section 80CCD(2). The taxable income of the salary bracket of Rs 10 lakh will be reduced by Rs 5 lakh. Rebate benefit is available under Section 87A on this taxable income. This means. That your tax will be zero.
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Investment will be determined by basic salary
By investing in NPS through your employer, you can avail higher exemption under Section 80CCD(2) of Income Tax. There is no limit to invest in this. But your basic salary will determine your investment.
Superfast News Coverage By YuvaPatrkaar.com Team
Publish Date: January 13, 2024
Posted By Sunil