I have query related to section 80c
It says we can get tax benefits of rs 1.5lakhs under this section
So for ex. If a person's income is 500000 this year so for tax
500000 - 250000 (no tax)
Left : 250000 taxable
Now from this 2.5 lakh he can take advantage of section 80c if he invests upto 1.5 lakh in for ex ELSS fund
So now 2.5 - 1.5 (invested)
Left : 100000 taxable
How much tax is applied on this ?
5% of 100000 or 5% on 250000??
Also is the same person can take investment every year and invest upto 1.5lakh to save tax?
3 Answers
Best Answer
Hi,
If gross income is Rs 5,00,000, and investments u/s 80C are Rs 1.5 Lakh, then we need to first deduct this from GI. If there are any other deductions, can be deductible from GI.
So, net taxable income is Rs 3.5 Lakh. Up to Rs 2.5 Lakh, no tax. From Rs 2.5 lakh to Rs 3.5 Lakh, tax slab rate is 10%. So, tax of Rs 10,000 (10% of 1 Lakh, for FY 2016-17) is payable. (For FY 2017-18, tax slab rate is 5%).
Yes, an individual can claim tax deduction of up to Rs 1.5 Lakh every year (subject to prevailing tax rules) to save tax.
Kindly read :
https://www.relakhs.com/latest-income-tax-slab-rates-for-fy-2017-18/
https://www.relakhs.com/income-tax-exemptions-fy-2017-18-list/
tax of Rs 10,000 (10% of 1 Lakh, for FY 2016-17) is payable. (For FY 2017-18, tax slab rate is 5%).
So this year the tax will be applied of FY 2016-17 (10%) or FY 2017-18(5%) ?
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