Also, its null 1234567
Close
  • Close

Money Matters

Tax Exemptions for Salaried | How to Save Tax for Salaried Individuals in India | YES BANK

Apply Now

 

In India, income tax is a tax that the government levies on the income generated by individuals, Hindu Undivided Families (HUF), businesses, and other such institutions. As per the Income Tax Act, 1961, it is mandatory for every earning Indian citizen to pay income tax for each financial year.

Read on to know more about how income tax affects you as a salaried individual and how you can save on it.

Bifurcation of income tax slabs

Under 60 years of age:

  • If you are under the age of 60 years and your annual income is up to ₹2.5 lakhs, you will be exempted from paying income tax.

  • If your annual income is between ₹2.5 lakhs and ₹5 lakhs, you will be required to pay 5% on the total income minus ₹2.5 lakhs and a 4% cess.

  • Similarly, the income tax percentage keeps on increasing with each bracket, i.e. 20% on annual incomes between ₹5 lakhs and ₹10 lakhs, and 30% on an annual income of ₹10 lakhs and above.

Above 60 years of age and up to 80 years of age:

Senior citizens, i.e. individuals aged 60 years and above, are exempted from paying income tax if their annual income is up to ₹3 lakhs. The remaining slabs are as explained above.

Above 80 years of age:

For senior citizens aged 80 years and above, the exempted annual income is up to ₹5 lakhs. The remaining slabs are similar, as explained above.

Tax saving tools

There are various sections under which the Income Tax Act of 1961 provides rebates to individuals. Each section is granted a different limit. Section 80C is the most common out of the lot and has a limit of up to ₹1.5 lakhs. It covers the following.

  • Tax saving fixed deposit

  • Unit Linked Insurance Plan (ULIP)

  • Equity Linked Savings Scheme (ELSS)

  • Public Provident Fund (PPF)

  • Employee Provident Fund (EPF)

  • National Pension Scheme (NPS)

  • National Savings Certificate (NSC)

  • Sukanya Samridhi Yojna (SSY)

  • Premium paid towards Life Insurance coverage

  • Principal Component of Home Loan Repayment

Apart from Section 80C, there are other sections under which you can increase your exemption limit too, such as.

  • Section 80D: deduction against the premium paid towards health insurance

  • Section 80EE: tax deduction up to ₹50,000 against home loan interest paid

  • Section 8CCD: tax deduction up to ₹50,000 for a contribution towards the National pension scheme

  • Section 80GG: tax deduction up to ₹60,000 on house rent in the absence of HRA

  • Section 80TTB: tax deduction up to ₹10,000 on the interest drawn from your savings account

  • Donations to charitable trusts or organizations that provide 80G certificates.

Tax Solutions by YES BANK

YES BANK brings you tax solutions that go beyond Section 80C. The bank provides you with solutions to all your tax-related queries.

  • You can get attractive interest rates and secure saving solutions with Tax-Saver Fixed Deposits.

  • You can enjoy amazing tax benefits with ELSS by YES BANK.

  • You can also avail hassle-free Home Loans and Education Loans at competitive interest rates.

In addition to this, salaried individuals can make use of various online facilities provided by YES BANK, such as a tax calculator, rent receipt generator, and the option to pay your taxes online on YES BANK’s website. You can also check out the YES Tax Solutions for detailed assistance for taxation and investment.

Conclusion

Tax savings for salaried individuals is a straight-forward process and offers a tax rebate to maximize savings. Given how your salary sheet can easily help identify the taxable aspects and the ones that are not, tax calculation is nothing short of a cakewalk. In case of any queries, consult with your wealth manager at the bank.

Know more about NRI Savings AccountSavings Account, and Fixed Deposit by visiting YES BANK'S

download app
Android App for YES BANK
App Store for YES BANK
yes pay wallet

Digital Wallet with free Virtual card and UPI which can be used to send/receive money, mobile/DTH recharge, pay bills and much more

Read More

Share