How to save income tax in India? Checkout List of tax-free Income

How to save income tax

If a person earns income from job, business, share market or in any way, then after crossing a certain limit of that income, income tax has to be paid on that income, but in India there would be some such income on which income tax is not levied.

We will talk about 15 such incomes that you can earn in India, but you do not have to pay income tax on that. how to save income tax in india

Some of these incomes are such that they do not attract any kind of tax and some of these incomes are such that there are some conditions, if those conditions are fulfilled, then those taxes will not be applicable to you.

Agriculture income :

How to save income tax

first of all let’s talk about agricultural income, it can be in three ways. First, the income that you are getting from your normal agriculture activity, if any person does that income. How to save income tax

The income from the agricultural activity is fully exempt, there is no tax on it in India. But if a person is doing agricultural income as well as doing non-agricultural income, then tax will be imposed on him.

The tax calculation is adjusted in such a way that your agricultural income is also considered taxable. Rent income can be another type of income in agriculture itself, if you have done agriculture, If the property is given to someone on rent, then whatever income you have, it is also considered as agriculture income.

The third income is the Sale of Property, If you sell your agricultural property, then the capital gain you make on it, that capital gain is also considered as your agreement. You do not have to pay any tax on that too.

Compensation income :

Now let’s talk about compensation income, you must have heard that many types of natural disasters come, earthquakes happened, and train accidents happened. Either way, a company incurs a loss. How to save income tax

Either the local government or the state government or the central government announces any compensation.For that family, that amount is completely tax free.

That is, any family getting 5,10 lakh any amount from the government, be it the central government, the state government or the local authority. If you get compensation from anywhere, then that income is completely tax free.

How to save income tax

Covid-related transfer :

Now let’s talk about covid related transfers, so far you must have seen that many people had a financial crisis and did not have money to get treatment, so many big people helped them.

At the same time, the money given for the help, the money that has been received will remain completely tax free for any attack. Like an employer helped his employee or you helped someone unknown person.

Whoever has received the money from the unknown person will be completely tax free. He does not have to pay any income tax. The government had just recently announced. How to save income tax

Maturity of insurance policy :

Now let’s talk about maturity of insurance policy, if any of your insurance policy matures and the amount you get is also completely tax free, but there is a condition on it. The premium amount you paid when you took the insurance policy.

If it is less than 20% of the sum assured, then it will be completely tax free at the time of maturity, if the premium amount is more than 20% of the sum assured, then it will not be tax free. This 20% limit was zero till April 1, 2012.

After this, if you have taken the policy, then this limit of twenty percent, it has been decreased to 10 percent. if you had taken this policy after April 1, 2012 and the premium was less than 10% of the sum assured, then whatever amount you get on maturity will be completely tax free.

The amount that is received on the maturity of the insurance and if the person was in dies then the amount received by the legal representative is completely tax free.

Provident fund money :

How to save income tax

Now let’s talk about the provident fund money that you get at the time of maturity, which is also completely tax-free, but there are many categories on it and there are many rules, but which you get the amount on maturity, if that condition If you fulfill, then according to the limit that you have decided, you become tax-free.

What does it cover? There is also Public Provident Fund, Provident Fund is also covered, Recognized Provident Fund is also covered, and Approach Super EPFO ​​Fund is also covered in this. How to save income tax

The amount you get on maturity is also tax-free in a way. But it is calculated in different ways according to the Income Tax Act.

Scholarship :

If a person is getting a scholarship from anywhere, from any government office, from any private way, then the amount of this scholarship remains completely tax-free for education, there is no tax on it.

MP MLA allowances :

Whether MP, MLA, MLC President or any minister, they get any kind of salary, or allowances, that are completely tax-free, no tax is charged on it.

How to save income tax

Award from Government :

Any award received from the Government is completely tax-free, but if the same award is received from a private company or any private agency, then this amount is not tax-free. How to save income tax

Only the amount received by the government is tax-free. Now you must have seen that if someone wins a medal in the Olympics, then awards are given to him by the government, then the prize money of that award is completely tax-free.

But if the same award is given by a private company Or on behalf of a private institution or someone else, then it is not tax-free. Tax is levied on it.

Pension amount :

The pension amount is also tax-free For many categories of people, for which people they are tax-free, so let’s see. Award winner Vir Chakra, Param Vir Chakra, Mahavir Chakra, Anyone has won this award and the pension he gets is tax-free.

Defense Medical Disability Pension: If a person becomes disabled on duty in defense, then his pension is also completely tax-free and if any person of the Armed Forces dies on duty, then the pension to his family will also be completely tax-free. it occurs.

Gift Income :

How to save income tax

Now let’s talk. What is the tax on gift?

Gifts can be of two types. First you will get it from a relative’s side and second, you can get it from a non-relative’s side, How to save income tax

so first let’s talk about if you are getting a gift from a relative, then whatever may be its amount, it will not be taxable for you.

Talking about gifts, not cash, if you are getting cash from a relative then you can get up to ₹ 2 lakh tax-free, but transferring cash of more than ₹ 2 lakh is not allowed and if you get a gift from a relative the amount you are getting is completely tax-free for you.

Now let’s talk if you are getting a gift from non-relatives in the whole year of the agri, the amount is up to ₹ 50,000. So it will remain tax-free, but if it reaches above 50,000 then that entire amount will become taxable for you.

It is not that up to 50,000 is fully exempt, if you have received a gift of 51,000, then the entire amount becomes your taxable.

Now you will find the definition of who these relatives will be in Section Fifty Six Sub Section Two of the Income Tax Act. How to save income tax

Now another category comes within the gift itself, gift receivers, and marriages, the gift received at the time of marriage is completely tax-free. If you are getting it from every relative, whether it is a transfer in cash or any kind of gift.

Any amount of bank transfer you can get from relatives will be completely tax-free for you.

But same if you are getting that gift from a non-relative and it crosses the limit of 50000 then it will be taxable. Even in the savings account, if you get an annual interest of up to ₹ 10,000, then that too is tax-free for you.

But if you are getting more than ₹ 10,000 interest in the savings account, then the income above that limit is taxable and the interest up to ₹ 10,000 is tax-free.

But if the interest of senior citizens is up to ₹ 50,000 inclusive of FD, plus savings account, then it is tax-free and if that interest income exceeds ₹ 50,000, then tax has to be paid on it .

If there is a person below 60 years of age, then only the income of the savings account will be calculated for him up to Rs 10,000 How to save income tax

Interest on PPF and PF:

How to save income tax

If you have invested in PPF and PF, then it is a different matter. But if you get interest on that income, that too is completely tax-free for you.

If you are getting any interest income over PF and PPF, then it is completely tax-free.

  1. How much tax do I pay on 10 lakhs?

    you have to pay Rs. 1,00,000 + 30% of income above Rs. 10 lakh + 4% cess

  2. Tax Saving Schemes

    .. National Pension System (NPS)
    .. Employees’ Provident Fund (EPF)
    .. Sukanya Samriddhi Yojana Interest Rate.
    .. National Savings Certificate.
    .. House Rent Allowance. How to save income tax

  3. What happens if we don’t pay TDS?

    Interest shall be levied @1.5% for every month

cash deposit limit

income tax rule itr filling compulsory

tax on crypto

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