We all wish to earn more so that we can fulfill all of our needs and demands easily. Though, there is a catch. The more your income the more you will be liable to pay tax. In India, there are certain tax slabs to fit different types of earners. Tax payers need to pay taxes according to their annual salary amount. Today, we would discuss how you can save tax when your annual salary is above 10 lakhs. It would be good if you consult with tax assistance like CA Chandan Agarwal & Co related to tax relief.
Tax Slab on Salary Above 10 Lakhs/Year
In 2023, there has been a change in the tax slab. According to the current Union Budget 2023-2024, if a person earns between INR 7.5 to INR 10 lakh per annum then he/she needs to pay 15% + Rs.37, 500 as tax. And, if a person earns above Rs.10 lakhs but below Rs. 12.5 lakhs, he/she needs to pay 20% + Rs.75, 000.
Tax Saving Methods
Now let us see how you can claim deductions on your annual salary above 10 lakhs.
· Claim on your health insurance policy premiums (According to Section 80D)
· On loans for higher education for your children
· If you make charity donations
· On the cost, you spend for disabled and dependent family members
· Claim tax relief on a home loan or loan for house renovation
· Claim on your House Rent Allowance (HRA) and Leave Travel Allowance (LTA)
· Claim on mobile or internet repayment when they are solely used for official purposes only.
· Allowance on the cost of education for your children
· Food allowance
· Professional tax
· Standard deductions of Rs. 50, 000
These are just a few ways to reduce your tax burden when you are earning above 10 lakhs annually.
On a Closing Note,
You can consider consulting with professional tax consulting firms like CA Chandan Agarwal & Co. in this matter. You will end up with the right solution to cut off the tax burden.