Question: How Can I Save My Income Tax After 80c?

What is the maximum amount of income tax you can save under section 80c of IT Act?

Rs 1.5 lakhThe maximum amount of deduction that can be claimed under section 80C is Rs 1.5 lakh for the current financial year i.e.

FY2018-19.

The section offers various investment options to the taxpayer which not only generate returns for him but can also be claimed as deduction while calculating total taxable income..

How can I save tax on my salary under 10 lakhs?

There are possible components for tax deductions which can help you save taxes:Annuity Plans.Child Tuition Fees.Employee National Pensions Scheme (NPS)Equity Linked Savings Scheme Investment.Fixed Deposits.Housing Loan Interest.Interest on Saving Account Deposits.Interest on the loan is taken for Residential House.More items…

Is PF part of 1.5 lakh investment?

PF Tax Benefit: The maximum limit of Section 80C is Rs 1.5 lakh per financial year and there are several investments, expenses including PF contributions of an employee that are eligible for tax benefit under this Section.

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

How much is the 2020 standard deduction?

2020 Standard Deduction Amounts $12,400 for single taxpayers. $12,400 for married taxpayers filing separately. $18,650 for heads of households.

How can I save tax after 1.5 lakhs?

I. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount. This, in effect, reduces your taxable income and reduces your tax liability.

Can I invest more than 1.5 lakhs in 80c?

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act.

What is the formula to calculate taxable income?

Your Adjusted Gross Income (AGI) is then calculated by subtracting the adjustments from your total income. Your AGI is the next step in figuring out your taxable income. You then subtract certain deductions from your AGI. The resulting amount is taxable income on which your taxes are calculated.

How can I save my tax after 80c?

1) Tax saving with NPS under Section 80CCD (1B): Taxpayers can save additional tax by investing up to ₹ 50,000 in NPS. This is over and above the benefit, they can claim on contributions under Section 80c. They also have the option of utilizing NPS for the ₹ 1.5 lakh limit of Section 80c.

What will happen if I deposit more than 1.5 lakh in PPF?

The PPF deposit up to 1.5 lakh is liable to the exemption and the amount to be received on maturity is also tax-free. Hence, PPF scheme undoubtedly is one of the most tax efficient and popular money-saving schemes in India.

What is 80c exemption?

Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income Tax. It allows for a maximum deduction of up to Rs. 1.5 lakh every year from an investor’s total taxable income.

Is 80c removed?

Most of the commonly available deductions such as section 80C (investments made in PF, NPS etc.), 80D (payment of medical insurance premium), standard deduction of Rs 50,000 etc. have been proposed to be removed but here is one tax benefit that can still be claimed by the individuals under the proposed new tax regime.

Why did Amazon pay no taxes?

Why Amazon paid no 2018 US federal income tax Amazon’s low tax bill mainly stemmed from the Republican tax cuts of 2017, carryforward losses from years when the company was not profitable, tax credits for massive investments in R&D and stock-based employee compensation.

How can I reduce my taxable income?

As of right now, here are 15 ways to reduce how much you owe for the 2019 tax year:Contribute to a Retirement Account.Open a Health Savings Account.Use Your Side Hustle to Claim Business Deductions.Claim a Home Office Deduction.Write Off Business Travel Expenses, Even While on Vacation.More items…•

Can a person have 2 PPF account?

The PPF rules allow the same individual to open another account in the name of a minor but it does not allow to hold more than one PPF account in one’s own name. While only one PPF account is allowed to be opened in one’s name, there could be a possibility that one ends up holding multiple PPF accounts.