What tax will I pay on 20 lakhs?

Which tax regime is better for 20 lakhs?

For a salary ranging between Rs 20 lakhs and Rs 25 lakhs, the applicable tax rate under the new tax regime would be the highest, that is 30%. Incidentally, this is the same tax slab that your salary would fall under according to the existing tax regime, that is 30%.

How much tax do I pay on 2000000?

If you make ₹ 2,000,000 a year living in India, you will be taxed ₹ 669,000. That means that your net pay will be ₹ 1,331,000 per year, or ₹ 110,917 per month. Your average tax rate is 33.5% and your marginal tax rate is 43.2%.

How much tax do I pay on 15 lakhs?

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

Total Income per annum Tax Rates
Above Rs. 7.50 lakh up to Rs. 10 lakh 15%
Above Rs. 10 lakh up to Rs. 12.50 lakh 20%
Above 12.50 lakh up to Rs. 15 lakh 25%
Above 15 lakh 30%

How can I calculate my income tax?

To calculate Income tax, include income from all sources. Include:

  1. Income from Salary (salary paid by your employer)
  2. Income from house property (add any rental income, or include interest paid on home loan)
  3. Income from capital gains (income from sale purchase of shares or house)
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How can I reduce my high salary tax?

How to Save Income Tax in India

  1. Use up your Rs 1.5 lakh limit under Section 80C. …
  2. 2) Contribute to the National Pension System. …
  3. 3) Pay Health Insurance Premiums. …
  4. 4) Get a deduction on your rent. …
  5. 5) Get a deduction on the interest on your home loan. …
  6. 6) Keep some money in your savings account. …
  7. 7) Contribute to charity.

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.

What income 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.

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%

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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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
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