What is the maximum amount you can save on income tax?

Can I save tax more than 1.5 lakh?

The most popular tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act, Section 80C includes various investments and expenses you can claim deductions on – up to the limit of Rs. 1.5 lakh in a financial year.

How can I save maximum tax on my salary?

Save Income Tax on Salary

  1. Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections. …
  2. Medical Expenses. …
  3. Home Loan. …
  4. Education Loan. …
  5. Shares and Mutual Funds. …
  6. Long Term Capital Gains. …
  7. Sale of Equity Shares. …
  8. Donations.

What is the exemption limit for income tax 2020?

○ The exemption limit on income tax is up to ₹3 lakh for senior citizens for FY 2020-21. ○ An additional 4% health and education cess is applicable on the tax amount.

What is the maximum investment for tax exemption?

As per this section, the investments made by the investor are eligible for tax exemption up to a maximum limit of Rs. 1, 50,000. Such investments include ELSS (Equity Linked Saving Scheme), Fixed Deposits, Life Insurance, Public Provident Fund, National Savings Scheme and Bonds.

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How can I save my income tax 2020 21?

Tips for Saving Tax in FY 2020-21

  1. Invest in Equity-Linked Saving Scheme (ELSS)
  2. Invest in the National Pension Scheme.
  3. Invest in Sukanya Samriddhi Yojna.
  4. Know When to Opt for the New Tax Regime.

What income is tax free?

Applicable for all individual tax payers:

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. Rebate under section 87A is not available for NRIs and Hindu Undivided Families (HUF)

What is taxable limit?

As per interim budget 2019, Individual taxpayers having taxable annual income up to Rs. 5 lakh will get full tax rebate u/s 87A and therefore will not be required to pay any income tax. However Income tax Slabs and Rates will remain unchanged for the FY2019-20.

How can I legally pay less taxes?

12 Ways to Legally Lower Your Taxes

  1. Adjust Your W-4. Employees have to give their employer a form known as the W-4. …
  2. Contribute to Your 401(k) …
  3. Open an IRA. …
  4. Create a College Fund. …
  5. Add Money to Your FSA. …
  6. Subsidize Dependent Care FSA. …
  7. Contribute to Your HSA. …
  8. Take Advantage of Earned Income Tax Credit.

What are the exemption for income tax 2020 21?

Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes. Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.

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What is the tax free income limit for the AY 2020 21?

The no-tax limit or the basic exemption limit for non-residents is ₹2,50,000 irrespective of their age. This is in addition to the surcharge that is 10% of tax where the total income exceeds Rs. 50 lakhs and 15% of tax if the total income exceeds Rs. 1 crore.

How do I maximize my tax return?

Make sure you’re not giving up any more of your hard earned money than you have to!

  1. Determine Your Tax Bracket. …
  2. Create a Receipt System. …
  3. Make a Charitable Payment. …
  4. Review Your Deductions. …
  5. Home and Car Expenses. …
  6. Travel Expenses. …
  7. Get Paid to Read News and Magazines. …
  8. Put Your Money in a Super Fund.

Can I take the standard deduction?

Even if you have no other qualifying deductions or tax credits, the IRS lets you take the standard deduction on a no-questions-asked basis. The standard deduction reduces the amount of income you have to pay taxes on. You can either take the standard deduction or itemize on your tax return — you can’t do both.