What is upto 5 lakhs tax?

Tax Slab Old Rates Tax / New 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% 25,000
Income from 7.5 Lakh – 10 Lakh 20% 37,500

What tax do I pay on 5.5 lakhs?

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

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%

What is the tax on 6.5 lakh?

Under this new tax regime, your salary of Rs. 6.5 LPA would fall under the tax slab of 10%. This flat tax rate is far lower than the tax slab that your salary of 6.5 LPA would fall under with the existing tax regime – 20%.

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.

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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.

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.

How is tax calculated?

Income tax is calculated on the basis of applicable tax slab. Your taxable income is worked out after making relevant deductions, the resultant taxable income will be taxed at the slab rate that is applicable. … The Union Budget 2019-20 has proposed full tax rebate for income up to ₹ 5 lakhs u/s 87A.

How do I calculate taxable income?

What are the steps to determine slab of your taxable income in India?

  1. Calculate your gross salary by adding Dearness Allowance, House Rent Allowance, Transport Allowance, Special Allowance to your basic pay.
  2. Then deduct the exemptions of HRA, professional tax and standard deduction from the gross salary.

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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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

How can I save tax on 20 lakhs?

But the good news is you can still manage to pay Zero (NIL) income tax on salary of up to Rs 20 lakhs (Salary here means cost to company).

Tax Deductions

  1. Section 80C Exemption – 1,50,000.
  2. NPS 80CCD(1B) Tax Exemption – 50,000.
  3. Medical Insurance (Self & Parents) – 60,000.
  4. Interest on Education Loan – 50,000.
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