What should be the annual income to pay tax?
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What should be the annual income to pay tax?
Who are the Tax Payers? Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.
Do salaried employees need to file ITR Quora?
Nope. The ITR is required to be filed only if the the Gross income exceeds the minimum exemption limit as set in the income Tax Act. The basic exemption limit for individuals below the age of 60 years is Rs. 2.50 lakhs for the financial year 2018–19.
How do I avail tax benefits?
Recommended ways of saving taxes under Sec 80C,80D and 80EE
- Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
- Buy Medical Insurance, maximum deduction allowed is Rs.
- Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.
How can I save my income tax in India?
Here’s a list of popular investment options to save tax under section 80C.
- Public Provident Fund.
- National Pension Scheme.
- Premium Paid for Life Insurance policy.
- National Savings Certificate.
- Equity Linked Savings Scheme.
- Home loan’s principal amount.
- Fixed deposit for a duration of five years.
- Sukanya Samariddhi account.
Do companies file ITR for employees?
When a Salaried Employee is supposed to file ITR? Individuals who earn taxable income or income that is above the exemption limit, it is mandatory for them to file Income Tax Return in India.
What if a salaried employee does not file ITR?
Filing of Return within due date: Non-filing of Income Tax return within the due date may attract a penalty of Rs. 5,000 or more and an interest at the rate of 1\% on the outstanding amount of tax. Further, the individual may also lose the benefit of a set of losses if any.
How can I avoid paying income tax in India?
Save Income Tax on Salary
- Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections.
- Medical Expenses.
- Home Loan.
- Education Loan.
- Shares and Mutual Funds.
- Long Term Capital Gains.
- Sale of Equity Shares.
- Donations.