| Tax Slab | Old Rates | New Rates |
|---|---|---|
| Income from 2.5 Lakh – 5 Lakh | 5% | 5% |
| Income from 5 Lakh – 7.5 Lakh | 20% | 10% |
| Income from 7.5 Lakh – 10 Lakh | 20% | 15% |
| Income from 10 Lakh – 12.5 Lakh | 30% | 20% |
How much tax do I pay on 10 lakhs?
So, even if you are in the highest slab rate of 30% because your income is more than ₹ 10 lakh a year, you pay the 30% tax only on the amount above ₹ 10 lakh while other slab rates apply for different levels of income.
How can I save tax on 10 lakhs?
The tax slab of 20% is applicable for an annual income between Rs 5 lakh and Rs 10 lakh, while the 30% tax slab is applicable for those individuals earning above Rs 10 lakh. You must also remember that an additional 4% health and education cess is also payable.
Which tax regime is better for below 10 lakhs?
10 lakhs are taxed at 20%, under the old regime.
…
Old vs New: A Comparison For Different Slabs.
| OLD RATES (with exemptions) | ANNUAL INCOME | NEW RATE (without exemptions) |
|---|---|---|
| Nil | Up to Rs.2.5 lakhs | Nil |
| 5% | Rs.2.5 – 5 lakh | 5% |
| 20% | Rs.5 – 7.5 lakh | 10% |
| Rs. 7.5 – 10 lakh | 15% |
What is the tax for 12 lakhs per annum?
12 lakhs, they will be paying a 30% tax on Rs. 12 lakhs i.e Rs. 3,60,000.
What tax will I pay on 5 lakhs?
Tax Rate for Individual Taxpayers for FY 2020-21 (AY 2021-22)
| Tax Slab | Old Rates | Tax / New Rates |
|---|---|---|
| Income up to 2.5 Lakh | 0% | |
| Income from 2.5 Lakh – 5 Lakh | 5% | 12,500 |
| Income from 5 Lakh – 7.5 Lakh | 20% | 25,000 |
| Income from 7.5 Lakh – 10 Lakh | 20% | 7,500 |
What is the tax on 5 lakhs?
People are generally under the impression that in case their income does not exceed the magic number of ₹5 lakh, he does not have to pay any tax. This is because for normal income the tax rate between 2.50 lakhs and 5 lakhs is 5% and the tax liability at 5% on 2.50 lakhs comes to exactly 12,500.
How much tax do I pay on 15 lakhs?
Frequently Asked Questions ( FAQ’s )
| Income Slab | Applicable Tax Rate |
|---|---|
| Above Rs 7.5 lakh and up to Rs 10 lakh | 15% |
| Above Rs 10 lakh and up to Rs 12.5 lakh | 20% |
| Above Rs 12.5 lakh and up to Rs 15 lakh | 25% |
| Above Rs 15 lakh | 30% |
Is 15 lakhs a good salary in India?
Is 15 lakhs a good salary in India? Further, if you are fairly young and have no ailments, 15 lakhs per annum is considered a good salary by Indian standards.
How can I save tax on 7 lakhs?
If you earn an annual salary up to Rs. 7.75 lakh, here’s how you can pay zero tax
- Highlights.
- People earning up to Rs. 5 lakh are now exempt from paying tax.
- Salaried individuals earning up to Rs. 7.75 lakh can also pay zero tax.
- To reduce taxable income to Rs. 5 lakh, invest fully in Sections 80C, 80D, 80CCD(1B), 80TTA.
What income is tax free?
Applicable for all individual tax payers:
Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both regimes.
How much tax should I pay for 7 lakhs?
New income tax slabs for individuals for FY 2020-21
| Income Tax Slab | Tax Rate |
|---|---|
| From Rs.5,00,001 to Rs.7,50,000 | 10% of the total income that is more than Rs.5 lakh + 4% cess |
| From Rs.7,50,001 to Rs.10,00,000 | 15% of the total income that is more than Rs.7.5 lakh + 4% cess |
Is 6 lakh good salary?
It is good. But it can get better. You are earning six lakhs per annum. That is around 50k per month.
Is income upto 5 lakhs tax free?
As per current income tax laws, a person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh. Therefore, the tax liability in such a situation will be zero.
How can I save tax if I earn 12 lakh?
Tax Deductions under Section 80(C)
Investments in ELSS funds (Equity-Linked Savings Scheme) Investments in NSC (National Savings Certificates) Payment of premiums against Life Insurance Policies. Investments in ULIPs (Unit-Linked Insurance Plans)
On which income tax is calculated?
Income tax is calculated on the basis of applicable tax slab. Your taxable income is worked out after making relevant deductions, the resultant taxable income will be taxed at the slab rate that is applicable. Nil. exceeding ₹ 500,000.