As an Indian citizen, I feel the new tax regime will deduct my salary a lot so I consulted with a CA friend to figure out how to save tax on 11 lakhs salary. I learned from him that by citing my house rent, children's education allowance, professional tax deductions, and other aspects, I can save on taxes. Let me share the same details with you next so that you can save tax on your income as well.
How to Save Tax for Salary 11 Lakhs?
There are many ways to save tax for a salary of Rs 11 lakhs. In India, taxpayers with a salary of 11 lakhs have the option to choose between the old and new tax regimes. Under the old regime, various exemptions and deductions can be leveraged, such as
HRA,
LTA,
children's education allowance, and
professional tax.
Additionally, deductions under Section 80C (up to Rs 1.5 lakh), Section 80D (health insurance premiums), and Section 80E (interest on education loans) can further reduce taxable income. By maximising these deductions and exemptions, it's possible to significantly lower your tax deductions.
The new tax regime, introduced recently simplifies the tax calculation process but offers limited deductions. It provides a standard deduction of Rs 50,000 and minimal other deductions, such as contributions to NPS (Section 80CCD(2)) and investments in the Agniveer Corpus (Section 80CCH). The new tax slabs, with a basic exemption of up to Rs 3 lakh and lower rates for subsequent slabs, can be beneficial for those without significant investments or eligible expenses.
So you can decide whether you want to go with the old tax regime or the new tax regime. I hope this has helped you understand how to save tax if salary is 11 lakhs.
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How to save tax for Salary 10 Lakhs?
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How to Save Tax on 11 Lakhs Salary?
Mainak
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39 days
2024-08-01T08:13:52+00:00 2024-08-01T08:13:53+00:00Comment
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