necessary to be paid by all. No one can avoid paying taxes provided they are
eligible for it or come under the taxable income category. Income tax slabs
help a person to know if they have to pay tax, what amount they will need to
pay and much more. There are many tax saving options that are available for
availing deduction from the tax to be paid.
afraid of the income tax monster? Worried it may affect your savings? Paying
taxes is one of the biggest nightmares of many people. It is because it is not
only important to pay taxes, but also to save them. When a person earns money
with their hard work it becomes difficult to part with it. A tax is a charge
levied by the government on the final gross income of the person obtained after
deductions made from the gross income of the individual. The deductions provided
are those provisions that the government has provided under various sections of
the Income Tax Act. Using these deductions a person can deduct the certain
amount eligible for rebate from their income earned.
Tax that a
person has to pay can be calculated from the Income
Tax Slab, released by the government every year during the announcement
of the union budget. One can also Calculate Tax amount that one is eligible to
pay on their own or using the income tax calculator. The method to calculate
tax is very simple. First of all the person needs to know the income tax
bracket. Then depending on the different category tax brackets the total tax
payable by the individual is calculated. For example, if a person belongs to
the income bracket of income earned below 2.2 Lakhs after the suitable
deductions is exempt from income tax. Similarly, a person with income earned
within 2.2 Lakhs to 5 Lakhs has to pay 10% of the income earned after deduction
of the suitable savings and so on.
provides many Tax
Saving Options that are available for deduction under various sections.
These include life insurance, mutual funds, home loans, PPF, tax saving FDs,
NSC, ULIPs, and other sources of income, such as sale of property and so on.
These tools help a person save their tax and also pay lesser tax. An
individual, who needs to pay tax, also needs to try some of these options.
There are many means of obtaining benefits. Both salaried and self employed
people need to pay these taxes making these saving schemes an attractive
option. One should however do complete research on all these options before
going for any options. This is because more than saving tax the main objective
of these tools is investments.
many companies that provide these Saving instruments. One can
simply search for them online and understand them better. Not only this, one
can also apply for them on the website of the various providers. This saves
time and effort of the individual.