How can I get tax benefit on salary?

How can a salaried person get tax benefit?

Top 10 Tax Saving Options for Salaried in 2020

  1. Employees’ Provident Fund (EPF)
  2. Public Provident Fund (PPF)
  3. ELSS.
  4. NPS.
  5. Tax Saving FD.
  6. Life Insurance Premium.
  7. HRA.
  8. LTC.

How can I get maximum income tax benefit?

Recommended ways of saving taxes under Sec 80C,80D and 80EE

  1. Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income. …
  2. Buy Medical Insurance, maximum deduction allowed is Rs. …
  3. Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.

How can I save tax on my salary and perquisites?

How to Save Taxes on Salary and Perquisites

  1. 1 : Salary – The Definition. …
  2. 2 : Tax Planning For Rent-Free Residential Accommodation. …
  3. 4 : How An Employee Can Get Tax-Free Car For Personal Use. …
  4. 5 : Perquisite Valuation Of Car For Office And Personal Use. …
  5. 6 : Deduction For House Rent U/S 80GG.

How can I get tax exempt from my salary?

Tax exemptions can be availed by investing in the following tools:

  1. Senior Citizen Savings Scheme (SCSS)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Pension Scheme (NPS)
  4. Public Provident Fund (PPF)
  5. National Pension Scheme (NPS)
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What is the minimum salary for income tax?

Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both regimes.

What is not paying taxes called?

What Is Tax Evasion? Tax evasion is an illegal activity in which a person or entity deliberately avoids paying a true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties.

What can I claim tax deductions?

Common Itemized Deductions

  1. Property Taxes. …
  2. Mortgage Interest. …
  3. State Taxes Paid. …
  4. Real Estate Expenses. …
  5. Charitable Contributions. …
  6. Medical Expenses. …
  7. Lifetime Learning Credit Education Credits. …
  8. American Opportunity Tax Education Credit.

In which month tax is deducted from salary?

Tax deducted at source (TDS) on salary

During June or July or every year, your employer will provide you a TDS certificate with details of tax deducted and submitted to the tax department. This certificate is known as Form 16.

Is tax calculated on basic salary?

It is basically 4.81% of employee basic salary. In this case, income tax is based on the gross salary of the employee and is deducted as a source by the employer. Moreover, the basic salary of an employee should be at least 50-60% of his/her gross salary.

How can I save tax if I earn 20 lakh?

Tax Exempted Salary Components

  1. Meal Coupons.
  2. Car Maintenance.
  3. EPF (Contribution by Employer)
  4. NPS (Contribution by Employer)
  5. Gift voucher.
  6. Mobile Phone and the Internet Bill Reimbursement.
  7. Newspaper/Journal Allowance.
  8. Children Education/Hostel Allowance.
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What is personal allowance in salary?

Personal allowances are granted to individuals as deductions from income in computing their taxable income. There is usually a deduction for the individual himself, spouse, children and other dependents.