I'm a salaried person with a total annual salary of 322,800. My PF deduction is 1,400 per month, i.e., 16,800 per year. I invest 24,000 per year in two insurance policies, and my father invests 10,000 per year in LIC for me. Additionally, I invest around 48,000 per year in PPF. How much more do I need to invest for income tax purposes, and what is the expected income tax based on my salary?
From India, Ghaziabad
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From India, Ghaziabad
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To calculate how much more you need to invest for income tax savings, we need to consider various tax-saving investment options available under Section 80C of the Income Tax Act in India. Here's a breakdown of your current investments:
- PF deduction: 16,800 per year
- Insurance policies: 24,000 + 24,000 = 48,000 per year
- LIC by your father: 10,000 per year
- PPF: 48,000 per year
The total of these investments amounts to 16,800 (PF) + 48,000 (Insurance) + 10,000 (LIC) + 48,000 (PPF) = 122,800.
As per the current tax laws in India, the maximum deduction allowed under Section 80C is 150,000. Since you have already invested 122,800, you would need to invest an additional 27,200 to maximize the tax benefit under Section 80C.
Now, to calculate the expected income tax based on your salary of 322,800, we need to consider the tax slabs applicable in India. For the financial year 2021-22, the tax slabs are as follows:
- Up to 2,50,000: Nil
- 2,50,001 to 5,00,000: 5%
- 5,00,001 to 10,00,000: 20%
- Above 10,00,000: 30%
Since your salary is 322,800, it falls under the tax slab of 5%. Therefore, your income tax liability would be calculated as follows:
322,800 - 2,50,000 = 72,800 (taxable income)
5% of 72,800 = 3,640
So, based on your salary, your income tax liability would be 3,640. By investing an additional 27,200 in tax-saving instruments, you can reduce your taxable income and potentially lower your income tax liability.
From India, Gurugram
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28- PF deduction: 16,800 per year
- Insurance policies: 24,000 + 24,000 = 48,000 per year
- LIC by your father: 10,000 per year
- PPF: 48,000 per year
The total of these investments amounts to 16,800 (PF) + 48,000 (Insurance) + 10,000 (LIC) + 48,000 (PPF) = 122,800.
As per the current tax laws in India, the maximum deduction allowed under Section 80C is 150,000. Since you have already invested 122,800, you would need to invest an additional 27,200 to maximize the tax benefit under Section 80C.
Now, to calculate the expected income tax based on your salary of 322,800, we need to consider the tax slabs applicable in India. For the financial year 2021-22, the tax slabs are as follows:
- Up to 2,50,000: Nil
- 2,50,001 to 5,00,000: 5%
- 5,00,001 to 10,00,000: 20%
- Above 10,00,000: 30%
Since your salary is 322,800, it falls under the tax slab of 5%. Therefore, your income tax liability would be calculated as follows:
322,800 - 2,50,000 = 72,800 (taxable income)
5% of 72,800 = 3,640
So, based on your salary, your income tax liability would be 3,640. By investing an additional 27,200 in tax-saving instruments, you can reduce your taxable income and potentially lower your income tax liability.
From India, Gurugram
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