IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

The actual amount of HRA received by the assesse in respect of the relevant period

The amount by which rent actually incurred by the assesse exceeds 10% of the basic salary OR

An amount equal to 50% of the basic salary (for accommodation in Mumbai, Kolkata, Delhi,or Chennai) and 40% of basic salary (for accommodation elsewhere) OR

If you live in a rented flat, you can claim tax deduction on the rent you pay

Additional deduction up tois allowed on health insurance premium paid towards covering parents(The maximum limit is increased toif the age of the person insured is above 60 years. If person who is senior citizen buys medical insurance for self and parents who are senior citizen he/she will be allowed deduction up to(Self 50,000 + Parents 50,000).

The maximum limit for deduction for health insurance policy premium taken for self, spouse or children is(The maximum limit is increased toif the age of the person insured is above 60 years. So, if person buys medical insurance for, self and parents who are senior citizen he/she will be allowed deduction up to(Self 25,000 + Parents 50,000).

The premiums paid towards health insurance policies taken for self, spouse, children or parents is eligible for tax deduction u/s 80D of Income Tax Act 1961:

If you have invested in NPS, you can get additional deduction uptou/s 80CCD(1B) which will be over and above deduction ofu/s 80C

IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

FAQs

1) How is income tax calculated?

Income tax is calculated on the basis of tax slab. Your taxable income is worked out after making relevant deductions, other taxes that you may have already paid (Advance Tax) and tax deducted at source (TDS), the resultant taxable income will be taxed at the slab rate that is applicable.

Male/Female Income Tax Rate Upto Rs. 2,50,000 Nil. Rs. 2,50,001 to Rs. 5,00,000 5% Rs. 5,00,001 to Rs. 10,00,000 Rs. 12,500 + 20% of Income exceeding Rs. 500,000. Above Rs. 10,00,000 Rs. 1,12,500 + 30% of Income exceeding of Rs 10,00,000. Senior citizen Income Tax Rate Upto Rs.3,00,000 Nil. Rs. 3,00,001 to Rs. 5,00,000 5% Rs. 5,00,001 to Rs. 10,00,000 Rs.10,000 + 20% of Income exceeding Rs. 500,000. Above Rs. 10,00,000 Rs. 1,10,000 + 30% of Income exceeding of Rs 10,00,000. Very senior citizen Income Tax Rate Upto Rs. 5,00,000 Nil. Rs. 5,00,001 to Rs. 10,00,000 20% Above Rs. 10,00,000 Rs. 1,00,000 + 30% of Income exceeding of Rs 10,00,000.

The Union Budget 2019-20 has proposed full tax rebate for income up to Rs. 5 lakhs u/s 87A.

2) How much tax should I pay on my salary?

The income tax on your salary will be calculated depending on the tax slab. The taxable income will be worked out after making applicable deductions, if any. If you invest in life insurance, you can claim deduction from taxable income of life insurance premium paid upto Rs. 1.5 lakhs. Section 80C also offers deduction from taxable income for investments in PPF (Public Provident Fund), NSC (National Savings Certificate) and other instruments along with home loan principal repayment. Additionally, if you invest in health insurance, you can get deductions up to Rs. 25,000 under Section 80D for yourself and your family and up to Rs. 25,000 (Rs. 50,000 if age of insured is 60 or above) for your parents. You can also get deduction of home loan interest up to Rs. 2 lakh under Section 24. These are ways you can consider to lower your overall tax outgo.

3) Which income is not taxable in India?

Incomes mentioned under section 10 of The Income Tax act 1961 are not taxable in India

4) What is the maximum non-taxable income limit?

Income up to Rs. 2.5 lakh does not attract any taxes. Further, u/s 87A person gets full tax rebate if income of a person is less than Rs. 5 Lacs

5) Does everyone have to file their income tax returns?

If your income is below the taxable threshold of Rs. 2.5 lakhs currently, it is not compulsory to file your income tax return. However, if you have a PAN (Permanent Account Number) card and an income that falls below the taxable threshold, experts advise the filing of your ITR with a NIL return. This is to show the IT department that you did not have any income that was taxable for a specific year and hence, did not pay your taxes for the same. This will help you immensely in the future. Also, if you are an Indian resident with investments/assets outside India, you have to file returns even if your overall income falls below the taxable threshold. You will have to file your tax returns if you are eligible to claim refunds on any taxes that you may have paid in advance.