Anushka Rathod Instagram – Here is a lists of some common tax deductions with the maximum tax saving that can happen in OLD TAX REGIME, but do know that tax planning is complex and should be done according to ones financial goals. If help is required please do consult a CA.
I know I Know I said ₹160,000 in the reel, but that’s because I factored in a ₹200,000 deduction under Section 24!
However, that is only in case the property is self-occupied. if it’s rented out then the entire interest on the home loan is allowed as a deduction.
Now coming to how I got the tax saving figures!
Assuming you are in the 30% Tax Slab and your annual salary income is ₹20,00,000 (after a Standard Deduction of ₹50,000), you need to pay ₹4,29,000 if you do not utilize any Deductions! 😓
But if you take all the deductions & maximize their limits, your tax liability comes down to ₹2,54, 280.
Here’s how🤔
1. A ₹200,000 deduction (Section 24) under Income from house property, making the gross taxable income ₹18,00,000 (₹20 Lakhs – ₹2 Lakhs)
2. Additional deductions of 3,10,000 under Sections 80C, 80GG, and 80D reduce the net taxable income to ₹14,90,000.
3. The final tax payable is ₹2,54,280. And that’s how you can save ₹159,120 in taxes!!🥳 (₹4,29,000 – ₹2,54,280).
Now, the math behind tax savings from specific Deductions:
Take Section 80C and assume that you have maximized the limit.
So, the tax you save on this is – ₹45,000 (30% of 150,000) ₹1800 (an education cess of 4% of ₹45000) = up to ₹ 46,800.
In the same way, we calculated it for other sections too!
Now if you fall under the 20% and 10% tax slab then you can save ₹106,080 and ₹26,520 in taxes respectively, including cess.
Do Note
→ These deductions are applicable only under the old tax regime.
→ Income from capital gains has not been considered.
Disclaimer: These are just general guidelines; tax rules are complex with a lot of terms and conditions and individual situations may vary. Consult your CA for personalized advice.
[anushka rathod, finance, investments, tax planning, tax saving]
#anushkarathod #finance #investments #taxsaving | Posted on 06/Dec/2023 20:00:08
