Minimize Your Tax Liability Know How

You can plan to maximize your tax savings and reduce income tax liability by availing the benefit of provisions relating to deductions/exemptions from taxable income under various sections of Income Tax Act.

Pay No Tax on aggregate Income of Rs. 7,65,000

An resident individual assessee aged below 60 years having income of Rs. 7,65,000 from salary / business or profession / other sources including saving bank interest of Rs. 10,000 and living in house / flat acquired with borrowed funds will be required to pay no tax as under:

Income from salary / business or profession / other sources Rs. 7,65,000
Less : Interest on funds borrowed for aquiring the house property Rs. 2,00,000
Gross Total income Rs. 5,65,000
Less : Deduction available under Sec. 80C Rs. 1,50,000
Less : Deduction u/s 80CCD(1B) (Contribution to NPS scheme) Rs. 50,000
Less : Deduction u/s 80D for medical insurance of self, spouse and dependent children Rs. 25,000
Less : Deduction u/s 80D for medical insurance of parents (assumed both are senior citizens) Rs. 30,000
Less : Deduction u/s 80TTA for Saving account interest Rs. 10,000
Total Income Rs. 3,00,000
Tax payable Rs. 5,000
Less : Rebate u/s 87A Rs. 5,000
Net Income Tax Liability Nil
Tax Savings Rs 80,340

Nitika Bansal

I will regularly provide update on direct tax and indirect tax

Leave a Reply