Quick Answer: How Can I Save My Income Tax FY 2019 20?

What is the income tax slab for 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y.

2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Rs.

7,50,001 to Rs.

10,00,00020%15%Rs.

10,00,001 to Rs.

12,50,00030%20%Rs.

12,50,001 to Rs.

15,00,00030%25%Above Rs.

15,00,00030%30%3 more rows.

How do you calculate income tax for the financial year 2020 21?

The tax liability will be Rs 12,000. The total tax liability in the new tax regime comes out to be Rs 1,99,500 ( 0+12,500+25,000+37,500+ 50,000+62,500+12,000)….S. No.Income slabsIncome tax rate (%)2Between Rs 2,50,001 and Rs 5 lakh5%3Between Rs 5,00,001 and Rs 7.5 lakh10%4Between Rs 7,50,001 and Rs 10 lakh15%4 more rows•Nov 17, 2020

What are tax slabs for 2019 20?

Income Tax Slabs and Rates for Financial Year: 2019-20Income Tax SlabIndividuals below the age of 60 yearsUp to `2,50,000Nil2,50,001 to 5,00,0005%5,00,001 to 10,00,00012,500 + 20% of total income exceeding 5,00,000Above 10,00,0001,12,500 + 30% of total income exceeding 10,00,000

Is 80c removed in 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.

What are standard deductions for 2020?

The standard deduction for 2020 is $12,400 for singles and $24,800 for married joint filers. There is also an “additional standard deduction,” for older taxpayers and those who are blind. A married filer who is blind or aged 65 and over can claim $1,300 for themselves.

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.

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.

How can I reduce my tax in 2020?

15 Easy Ways to Reduce Your Taxable Income in AustraliaUse Salary Sacrificing. … Keep Accurate Tax and Financial Records. … Claim ALL Deductions. … Feeling Charitable? … Minimise your Taxes with a Mortgage Offset Account. … Add to Your Super (or Your Spouse’s) to Save Tax in Australia. … Get Private Health Insurance. … Minimise Capital Gains and Minimise Taxes.More items…

What is the latest income tax slabs?

For super senior citizens, aged 80 years and above, income up to Rs 5 lakh is exempt from tax. Income from Rs 500,001 to Rs 10 lakh is taxed at 20 per cent and above Rs 10 lakh is taxed at 30 per cent….Related.Total income (Rs)Income tax rateFrom 12,50,001 to 15,00,00025 percentAbove 15,00,00030 percent5 more rows•Nov 26, 2020

How can I save my income tax 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

How can I save my maximum tax in 2019?

In this article, we cover all the major tax deductions under the Income Tax Act:Use up your Rs 1.5 lakh limit under Section 80C. … 2) Contribute to the National Pension System. … 3) Pay Health Insurance Premiums. … 4) Get a deduction on your rent.5) Get a deduction on the interest on your home loan.More items…•

What can I do to save my income tax?

PersonalClaim deductible expenses. Individuals are entitled to claim deductions for expenses directly related to earning taxable income. … Donate to charity. … Create a mortgage offset account. … Delay receiving income. … Hold investments in a discretionary family trust.

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…

How much I can save in income tax?

Section 80C of the Income Tax allows tax exemption of up to Rs. 1.5 lakhs per annum (meaning you can save up to Rs. 45,000 on tax per year). Fixed deposits, PPF, ULIP and ELSS are some of the more popular 80C investments, though there are plenty of other options too.

What is the rebate for AY 2020 21?

From the AY 2020-21 rebate u/s 87A (only for Individual) is available only if the Net Total Income < Rs. 5,00,000/-. The quantum of maximum rebate will be Rs. 12500/-....Income tax slabs.Taxable incomeTax RateRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%1 more row•Aug 10, 2020

How can I save tax on FY 2019 20?

How a salaried person with income up to Rs 7.75 lakh can now pay zero taxFirst you can claim standard deduction of Rs 50,000 for FY 2019-20.You can invest Rs 1.5 lakh under section 80C in any of the eligible tax saving avenues.You can also invest Rs 50,000 under section 80CCD (1B) in the National Pension Scheme.More items…•

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 a salaried person reduce tax?

Reduce your tax bill by salary sacrificing pay into super and making an after-tax contribution to your low-earning spouse in return for a tax offset. Reduce any capital gains by selling loss-incurring investments, such as shares. Be sure to claim all legitimate work-related expenses.