How can high income earners reduce tax in India?

How can high income earners reduce tax in India?

Recommended ways of saving taxes under Sec 80C,80D and 80EE

  1. Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
  2. Buy Medical Insurance, maximum deduction allowed is Rs.
  3. Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.

Where should I put money to avoid taxes?

  1. Invest in Municipal Bonds.
  2. Take Long-Term Capital Gains.
  3. Start a Business.
  4. Max Out Retirement Accounts.
  5. Use a Health Savings Account.
  6. Claim Tax Credits.
  7. The Bottom Line.

How much money can I make per year and not pay taxes?

The minimum income amount depends on your filing status and age. In 2020, for example, the minimum for single filing status if under age 65 is $12,400. If your income is below that threshold, you generally do not need to file a federal tax return.

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How much does the tax bill really help the middle class?

$470 billion in tax increases to the middle class, about a half a trillion dollars in increases to the middle class, $2.5 trillion in tax cuts to corporate America. Pelosi, Oct. 5, press availability: The tax cuts in the bill — 80 percent of the tax cuts in the bill benefit the top 1 percent in our country.

How to save tax on agricultural income in India?

Any income generated from agricultural activities is exempted from tax under the Indian Income Tax Act. This is done to boost the agricultural sector. Any rent from agricultural land, income from products or from farm buildings is not taxed. Under section 80C, the government has introduced the PPF Accounts to save on taxes.

Which is the best tax saving plan under IRDAI?

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply. Tax Saving is the best options for investment like Section 80C offers Rs. 1.5 lakhs, tax saving mutual funds ELSS, PPF, NPS, 80CCD & 80D.

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What are the easiest tax deductions under the Income Tax Act?

However the total loss that can be claimed on the broader head of income from house property is capped at Rs 2 lakh. This is probably the easiest deduction under the Income Tax Act that individuals can claim. Interest on savings accounts is tax free up to Rs 10,000 per year under Section 80TTA.

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