Tax is necessary to be paid by all. No one can avoid paying taxes provided they are eligible for it or come under the taxable income category. Income tax slabs help a person to know if they have to pay tax, what amount they will need to pay and much more. There are many tax saving options that are available for availing deduction from the tax to be paid.
Are you afraid of the income tax monster? Worried it may affect your savings? Paying taxes is one of the biggest nightmares of many people. It is because it is not only important to pay taxes, but also to save them. When a person earns money with their hard work it becomes difficult to part with it. A tax is a charge levied by the government on the final gross income of the person obtained after deductions made from the gross income of the individual. The deductions provided are those provisions that the government has provided under various sections of the Income Tax Act. Using these deductions a person can deduct the certain amount eligible for rebate from their income earned.
Tax that a person has to pay can be calculated from the Income Tax Slab, released by the government every year during the announcement of the union budget. One can also Calculate Tax amount that one is eligible to pay on their own or using the income tax calculator. The method to calculate tax is very simple. First of all the person needs to know the income tax bracket. Then depending on the different category tax brackets the total tax payable by the individual is calculated. For example, if a person belongs to the income bracket of income earned below 2.2 Lakhs after the suitable deductions is exempt from income tax. Similarly, a person with income earned within 2.2 Lakhs to 5 Lakhs has to pay 10% of the income earned after deduction of the suitable savings and so on.
The Act provides many Tax Saving Options that are available for deduction under various sections. These include life insurance, mutual funds, home loans, PPF, tax saving FDs, NSC, ULIPs, and other sources of income, such as sale of property and so on. These tools help a person save their tax and also pay lesser tax. An individual, who needs to pay tax, also needs to try some of these options. There are many means of obtaining benefits. Both salaried and self employed people need to pay these taxes making these saving schemes an attractive option. One should however do complete research on all these options before going for any options. This is because more than saving tax the main objective of these tools is investments.
There are many companies that provide these Saving instruments. One can simply search for them online and understand them better. Not only this, one can also apply for them on the website of the various providers. This saves time and effort of the individual.
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Save Tax The Smart Way
Tax Saving is necessary to for people who have to pay their income tax. One can calculate the tax that they have to pay with the help of the Income Tax Slab. There are many schemes that provide rebate on the tax that one has to pay. Some of the most popular schemes are listed in Section 80C.
