Hello there. I saw you asking how to save tax on 18 lakhs salary, and I can help you with it. I fall in the bracket of income above Rs. 15 lakhs and saved tax through some applicable methods. Let me tell you about them.
How to Save Tax for Salary 18 Lakhs?
I am sharing the methods to save tax on your salary below.
Tax Savings Under the New Regime
You can get tax deductions under the new regime for a salary above Rs.15 lakhs in the following ways:
Standard deduction up to Rs. 50,000 if you are a salaried employee.
Section 57(iia) - Family Pension.
Interest on a home loan on the let-out property (Section 24).
Section 80 CCH - Investment made in Agniveer Corpus.
Section 80CCD(2) - Employer contribution to NPS.
Conveyance allowance received to meet the conveyance expense as part of the employment.
Transport allowances in case of a specially-abled person.
Any type of compensation to meet the travelling cost on tour or transfer.
Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA).
Tax Savings Under the Old Regime
Here is how to save tax if the salary is 18 lakhs under the old tax regime:
You can invest in multiple options and get tax benefits up to Rs. 1.5 lakhs every year as per Section 80C. The options are as follows:
EPF
PPF
Fixed Deposit for 5 years and more
Sukanya Smriddhi Yojana
Home loan repayment and Stamp duty
Equity Linked Saving Scheme funds
National Savings Certificate
Health insurance as per Section 80D
Cost to treat disabled dependents as per Section 80DD:
Rs. 75,000 for 40 per cent disability
Rs. 1.25 lakhs for severe and 80 percent disability
Deductions on home loan payments
Principal amount: Up to Rs. 1.5 lakhs u/s 80C
Interest amount: Up to Rs. 2 lakhs paid u/s 24b
Standard deduction of Rs. 50,000 with no restrictions
This is all about how to save tax on 18 lakhs salary. I hope this helps.
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Authors Of The Question
How to Save Tax on 18 Lakhs Salary?
ojas
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1 Answers
4 months
2024-07-29T21:22:58+00:00 2024-07-29T21:22:59+00:00Comment
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