Budget 2023 Update:Increased Deposit Limits: The maximum deposit for the senior citizen saving scheme has been enhanced from Rs 15 lakhs to Rs 30 lakhs. The maximum deposit limit for the monthly savings scheme is enhanced from Rs 4.5 lakh to Rs 9 lakh for a single account and from Rs 9 lakh to Rs 15 lakh for a joint account.Post Office Investment-Savings SchemesThe Post Office Saving Schemes include several reliable products and offer risk-free investment returns. Around 1.54 lakh post offices spread all over the country operate these schemes. For example, the government operates the PPF scheme via 8200 public sector banks and post offices in each city. These investments are government-backed and thus provide guaranteed returns. Investments in post office schemes help to create a corpus for emergency purposes and achieve goals.

If you have filed your income tax return for the previous year, then now its your time to verify your returns. It is mandatory to verify your Income tax Returns. If you fail to verify it on time, your ITR will be considered invalid, meaning it is as good as you have not filed your return. Latest Updates: The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V.Steps to E-verify your Tax ReturnThere are several methods available for e-verifying your ITR:e-Verify through CleartaxGenerate Aadhaar OTPExisting Aadhaar OTPExisting EVCDigital Signature Certificate (DSC)Generate EVC through a bank accountGenerate EVC through the Net BankingGenerate EVC through DEMAT accountGenerate EVC through bank ATM option (offline)Method 1: E-Verify through CleartaxStep 1: After submitting your return through Cleartax website, you can click on the 'E-verify Now' and complete the verification instantly.

Every individual needs to file their taxes in the specified IT return form. Taxpayers need to file ITR for capital gain by submitting ITR Form 2 to the Income Tax Department. However, if your total income for a financial year includes income generated from business or profession, you will be required to file ITR-3 as the income tax return for capital gains. If your income source is salary, sale of foreign assets or property, etc., you are eligible to file ITR-2. Read on to learn how to file the capital gain ITR form.  Eligibility Criteria to File ITR-2 FormIf you fulfil the following criteria, then it is mandatory to file the ITR-2 form:Any Indian individual or member of the HUF (Hindu Undivided Family)Salaried or pensioned individuals having income exceeding Rs.50 lakhs.Individuals earning capital gains from the sale of shares, mutual funds, immovable property, and virtual digital assets.

The income tax slabs are different under the old and the new tax regimes. Further, the slab rates under the old tax regime are divided into three categoriesIndian Residents aged < 60 years + All the non-residents 60 to 80 years: Resident Senior citizensMore than 80 years: Resident Super senior citizensBudget 2024 Update: Tax Slabs Under New Regime UpdatedThe Budget 2024 has revised the tax slabs in the New Regime, providing taxpayers with an extra opportunity to save Rs. 17,500 in taxes. Additionally, the standard deduction has been raised to Rs. 75,000 under this regime and the family pension deduction has been increased to Rs.

Heads of IncomeThe Income Tax Department breaks down income into five heads of income for the purpose of income tax reporting:Income from SalaryIncome from House PropertyIncome from Capital Gains/LossProfits and Gains from Business and ProfessionIncome from Other SourcesIncome from Other Sources covers income that does not fall under any of the other heads of income. Savings Bank Account – Interest IncomeInterest that gets accumulated in your savings bank account must be declared in your tax return under income from other sources. Note that the bank does not deduct TDS from savings bank interest. Interest from fixed deposits and recurring deposits is taxable, while interest from savings bank accounts and post office deposits is tax-deductible to a certain extent. However, they are shown as under income from other sources. Interest income from a savings bank account or a fixed deposit or from a post office savings account are all shown under this head.Deduction on Interest Income Under Section 80TTAFor a residential individual (age of 60 years or less) or HUF, interest earned upto Rs.10,000 in a financial year is exempt from tax. The deduction is allowed on interest income earned from:savings account with a bank;savings account with a co-operative society carrying on the business of banking; orsavings account with a post officeSenior citizens are not entitled to benefits under section 80TTA.Tax on Fixed DepositsFixed deposit interest that you receive is added along with other income that you have, such as salary or professional income, and you’ll have to pay tax on that income at a tax rate that applies to you. TDS is deducted on interest income when it is earned, though it may not have been paid.Example: The bank will deduct TDS on interest accrued each year on a FD for 5 years.

Capital gains are taxed according to the tenure of holding investments. Investment gains are broadly classified into long-term capital gains and short-term capital gains. The taxation of long-term capital gains is divided under two provisions, Section 112 and Section 112A of the Income Tax Act.Budget 2024 Update:Budget 2024 has proposed the following amendments effective from FY 24-25 -There will only be two holding periods for classifying assets into long-term and short-term: 12 months and 24 months. The 36-month holding period has been removed.The holding period for all listed securities is 12 months. All listed securities with a holding period exceeding 12 months are considered Long-Term.

People in the high-income bracket of salary above Rs 15 lakh often look for tax saving measures so they can pay the least in taxes. The Income Tax Act offers various opportunities for taxpayers to avail of deductions and decrease their tax obligations. With efficient tax planning, you can save significant amounts of taxes.Here’s how you can save tax on Rs 15 lakh annual salary. Latest Update As Per Budget 2024As per the latest Finance Act 2024, changes have been made in the slab rate for the new tax regime applicable for FY 24-25 as follows - Tax Slab Tax Rateupto ₹ 3 lakhNil₹ 3 lakh - ₹ 7 lakh5%₹ 7 lakh - ₹ 10 lakh10%₹ 10 lakh - ₹ 12 lakh 15%₹ 12 lakh - ₹ 15 lakh20%more than ₹ 15 lakh30%In the new tax regime, the standard deduction has been increased from Rs.50,000 to Rs.75,000, and the deduction on family pension has also been increased from Rs.15,000 to Rs.25,000. Tax Slabs Under Old vs New RegimeThe old regime allows for several deductions that are not available in the new one. However, the tax rates under the new regime are lower than that of the old tax regime. You can also use the old vs new tax regime calculator for better understanding. Tax SlabFY 2023-24 Tax Rate (Old tax regime)Tax SlabFY 2023-24 Tax Rate (New tax regime)Up to Rs 2,50,000NilUp to Rs 3,00,000NilRs 2,50,000 – Rs 5,00,0005%Rs 3,00,000 – Rs 6,00,0005%Rs 5,00,000 – Rs 10,00,00020%Rs 6,00,000 – Rs 9,00,00010%Rs 10,00,000 and beyond30%Rs 9,00,000 – Rs 12,00,00015%NANARs 12,00,000 – Rs 15,00,00020%NANARs 15,00,000 and beyond30%Above tax slabs under the old tax regime are applicable to those individuals aged less than 60 years. For individuals aged between 60 and 80 years basic exemption is Rs 3,00,000 and for individuals aged over 80 years, the basic exemption is Rs 5,00,000.

The Income Tax Department follows a progressive tax regime that increases the tax rate with the rise in an individual’s income. As a result, people belonging to high-income groups generally bear a higher taxation rate and those belonging to the low or middle-income group have to bear a lesser tax rate.Individuals with a high yearly income generally look for tax-saving measures to reduce their tax burdens. If you are looking for how to save tax on 20 lakhs salary, check out all the tax-saving options you need to know.  Latest Update On Budget 2024Budget 2024 has proposed change in the tax slab, and also there has been an increase in standard deduction under the new tax regime from ₹ 50,000 to ₹ 75,000 and family pension deduction from ₹ 15,000 to ₹ 25,000. The newly proposed tax slab is as follows;Tax Slab Tax Rateupto ₹ 3 lakhNil₹ 3 lakh - ₹ 7 lakh5%₹ 7 lakh - ₹ 10 lakh10%₹ 10 lakh - ₹ 12 lakh 15%₹ 12 lakh - ₹ 15 lakh20%more than ₹ 15 lakh30%Introduction of new tax slabs will save tax on an individual of Rs 17,500.Keeping this in mind, let us discuss the tax slab rates, deductions, and exemptions available with examples under both regimes.Tax Saving Options Above 20 Lakhs Salary - New Tax Regime Tax Slabs for individuals in the new regime (Revised as per Budget 2023) are as follows:Tax SlabFY 2023-24 Tax Rate (New tax regime)Up to Rs 3,00,000NilRs 3,00,000 – Rs 6,00,0005%Rs 6,00,000 – Rs 9,00,00010%Rs 9,00,000 – Rs 12,00,00015%Rs 12,00,000 – Rs 15,00,00020%Rs 15,00,000 and beyond30%Individuals opting for the new tax regime have limited scope of claiming exemption or deduction. The main purpose of introducing a new regime is to phase out all the deductions and exemptions available in the Income-tax Act.

The first step towards tax saving is to understand the country's tax structure. At present, there are two tax regimes operational in the country. The taxpayers now have the choice to pick a tax regime that can help them save more money. If you haven’t made any choice, you will be shifted to the new tax regime by default. If you want to know how to save tax on a 1 crore salary, this is just for you. Latest Update Budget 2024Finance Bill 2024 has amended the slab rates of the new Income Tax Regime for the FY 2024-25, as follows -Tax Slab Tax Rateupto ₹ 3 lakhNil₹ 3 lakh - ₹ 7 lakh5%₹ 7 lakh - ₹ 10 lakh10%₹ 10 lakh - ₹ 12 lakh 15%₹ 12 lakh - ₹ 15 lakh20%more than ₹ 15 lakh30%Furthermore, there has been changes in standard deduction and family pension deduction particularly in the new tax regime. There has been an increase in the standard deduction from ₹ 50,000 to ₹ 75,000, and deduction on family pension has also increased from ₹ 15,000 to ₹ 25,000.Tax Slabs Under Old vs New Tax RegimeAs per the new income tax guidelines, you can opt for either the new or the old regime while filing your taxes.

In India, the Income Tax Department taxes an individual’s income based on the tax slab they belong to. Taxpayers are always looking for measures to pay zero tax on salary. But they miss out on salary optimisation. If you want to pay zero tax on a salary above 10 lakh, give this article a read. Here, you will find various tips on tax planning for a salary above 10 lakhs.Latest Update on Budget 2024Financial Bill 2024 has proposed change in the tax slab, and also there has been an increase in standard deduction under the new tax regime from ₹ 50,000 to ₹ 75,000 and family pension deduction from ₹ 15,000 to ₹ 25,000.