Earning Rs 10 lakh per annum? Here's how you can pay zero tax
Zee News
Even those earning a robust Rs 10 lakh per year can plan on paying no taxes.
New Delhi: Taxpayers, still reeling from the repercussions of the pandemic and lockdowns, have high hopes for the next Union Budget 2022-23. One frequent proposal is to increase the basic exemption amount from Rs 2.5 lakh to Rs 5 lakh. Taxpayers have also requested that the Finance Ministry increase the current standard deduction ceiling from Rs 50,000 to at least Rs 1 lakh.
Many people expect that the Finance Minister would restructure tax slabs in order to reduce their tax burden, but this appears unlikely. The development, if it materialise, will be greatly appreciated by taxpayers. Even if it does not, there are numerous provisions in existing tax rules that, if properly utilised, can dramatically lower the tax burden.
Even those earning a robust Rs 10 lakh per year can plan on paying no taxes. Assume a person earns Rs 10 lakh per year in salary and Rs 20,000 in interest. Due to the standard deduction, the yearly income will be lowered to Rs 9.7 lakh taxable income right away.
