How much tax should I pay for 6 lakhs?

What is the tax on 6 lakhs?

Without Exemptions/Deductions, the tax calculator shows those earning Rs 6 lakh annual income will have to pay Rs 23400 as tax as per the new regime. The tax payable under the old regime without exemptions and deductions will be Rs 33,800. Thus the total tax benefit as per new regime would be Rs 10,400.

What tax will I pay on 5 lakhs?

Tax Rate for Individual Taxpayers for FY 2020-21 (AY 2021-22)

Tax Slab Old Rates Tax / Old Rates
Income up to 2.5 Lakh 0%
Income from 2.5 Lakh – 5 Lakh 5% 12,500
Income from 5 Lakh – 7.5 Lakh 20% 34,000
Income from 7.5 Lakh – 10 Lakh 20%

What is the tax for 7 lakhs?

New income tax slabs for individuals for FY 2020-21

Income Tax Slab Tax Rate
From Rs.5,00,001 to Rs.7,50,000 10% of the total income that is more than Rs.5 lakh + 4% cess
From Rs.7,50,001 to Rs.10,00,000 15% of the total income that is more than Rs.7.5 lakh + 4% cess

What tax do I pay on 5.5 lakhs?

What are the different tax slabs and tax rates under the new tax regime?

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Total Income per annum Tax Rates
Upto Rs. 2.5 lakh Nil
Above Rs. 2.5 lakh up to Rs. 5 lakh 5%
Above Rs. 5 lakh up to Rs. 7.50 lakh 10%
Above Rs. 7.50 lakh up to Rs. 10 lakh 15%

Is 20 lakhs a good salary in India?

It depends on what do you mean by “good” and “experience”. There are factors such as if you are staying single or have dependents, your expenditure. However, in general 18–20 LPA is a good salary in India.

How can I save tax if I earn 6 lakh?

To avail these deductions, you can invest in any of the following instruments:

  1. Employee Provident Fund (EPF) Investments.
  2. Public Provident Fund (PPF) Investments.
  3. Equity Linked Savings Scheme (ELSS)
  4. Tax Saving Fixed Deposits.
  5. Sukanya Samriddhi Yojana.
  6. National Saving Certificate (NSC)
  7. Term Life Insurance Premium.

Which amount is tax free?

Therefore, under the new tax regime, basic exemption limit will remain Rs 2.5 lakh for all taxpayers.” Do keep in mind that only individuals having no business income in a financial year are eligible to choose between both the tax regimes every year.

How is tax calculated on salary?

As his taxable income is Rs. 3,77,500, he falls in the slab of 2.5 lakhs – 5 lakhs of income tax. Thus he has to pay 10% of his net income as income tax.

Example.

Basic Salary 25000 * 12 = 3,00,000
DA 4500 * 12 = 54,000
EA 2250 * 12 = 27,000
Gross Salary = 3,81,000
Professional Tax 3500

How do I become tax exempt?

Tax exemptions can be availed by investing in the following tools:

  1. Senior Citizen Savings Scheme (SCSS)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Pension Scheme (NPS)
  4. Public Provident Fund (PPF)
  5. National Pension Scheme (NPS)
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Is 5 lakh annum a good salary?

If you talking about 5 lakhs per month, then definitely a handsome salary but if you are talking abou 5 lake per annum then also it is decent salary for start. Various factors are involved in it like your place of living, your standard of living, family size, your expenditures, your investments, your savings etc.

What is the tax on 7.5 lakh?

The finance minister announced that individuals with an annual income between Rs 5 lakh and Rs 7.5 lakh would pay 10% tax, and those earning Rs 7.5 lakh to Rs 10 lakh 15%. Under the old regime, with deductions, these individuals pay 20% income tax.

Is 30 lakhs a good salary in India?

Mostly salary is directly proportional to experience. … But after almost 5 to 6 years of experience and with skills a person in India can get 25 lakhs to 30 lakhs per annum. But those people are just about 20% of the population. One platform in India which now gives you better advice is none other than Quora.

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