No need to pay tax even on earning of Rs.10 lakhs p.a

Here is a steps

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Form-16 has been issued by the companies.

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If your thinking of paying tax on income of 10 lakhs, then you are wrong

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On a salary of 10.5 lakhs, then first of all subtract 50k given by the govt as standard deduction. In this way your taxable income is now Rs.10lakhs

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Now you can claim Rs.1.5 Lakhs under 80C.

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In this, you can claim children's tuition fee, PPF, LIC, EPF, MF, Principal of home loan etc.

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You have to invest 50 thousand under NPS under 80CCD(1B) to make zero tax on salary of 10.5 lakhs

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Now under section 24B of income tax, you can claim tax exemption on home loan interest of Rs.2 lakhs.

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Under section 80D of Income Tax, you can claim a premium of Rs.25 thousand medical health insurance for your family

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Apart from this, senior citizens can claim50 thousand for health insurance premium paid for parents.

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After claiming total health insurance premium of 75 thousand, your taxable income has come down to 5.25lakhs

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Now you have to donate 25 thousand to any organisation or trust to bring your taxable income to 5 lakhs.You can claim it under section 80G of Income Tax.

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On donating 25 thousand your taxable income come down to Rs.5Lakhs.

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On this income of 2.5 to 5 lakh, at the rate of 5%, your tax become Rs.12500.

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But there is exemption from the Govt on this. In this case your tax liability becomes zero.

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