How Not to Pay Income Tax for Earning 10 Lakhs+ Yearly

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Income tax
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Income Tax 2019: Budget 2019 has been announced earlier yesterday and regarding the same, the percentage and the amount of Tax to pay on the basis of income also announced. The new Income Tax revision, which gives income to those with income up to Rs 5 lakhs, will have a debate on how much people can earn to completely eliminate taxes. If all the provisions of tax deductions and tax havens are utilized, those with an annual income of Rs.10,05,000 * can be exempted from income tax.

There will be more than 10 lakh tax cuts for the 5 lakh beneficiaries: 

Do you know how not to pay any single Income Tax for those who earn more than 10 lakhs INR per year? There will be more than 10 lakh tax cuts for the 5 lakh beneficiaries as per the update followed yesterday in the Budget 2019. The below key points will help you to make sure whether your income can also make use of the same as well. Feel free to take a look into the Key points provided.

  • Annual Income: Rs. 9,50,000 / –
    Standard Deduction: 50,000
  • Under the 80C it is received: 1,50,000
  • (Life Insurance, PF, home loan repayment, child tuition fees)
  • Maximum Debt of Home Loan: 2,00,00
  • National Pension Scheme Deposit: 50,000
  •  Tax Total Revenue Total: 9,50,000 – 50,000-50,000- 2,00,00-50,000 = Rs. 5,00,000
  • Tax: 12,500 (5%)
  •  The rebate declared in the budget: 12,500
  • Tax payable: 0

Besides, paying up to Rs 25,000 for the medical insurance premium is tax-free. If it is utilized, an income tax of Rs. 9.75 lakh should be paid. In the case of medical insurance, parents have a discount of up to Rs 25,000. Tax exemption can be avoided if the beneficiary receives a sum of Rs 10 lakh. If one of the parents is over 60 years of age, the limit is Rs 30,000.

Final verdict:

In this way, the annual income of Rs 10.05 lakh can be relaxed. Standard Deduction is for Salary only. Others should consider it.

How Not to Pay Income Tax for Earning 10 Lakhs+ Yearly
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