Any income generated by individuals is liable for taxes, imposed by the Government. An income tax is a tax on an individual’s income or business that taxpayers are obligated to file annually. Taxes act as a source of revenue for the Government, which is in turn used for public welfare through infrastructure like- parks, public transport, roads, rails, and much more. Government jo bhi taxes collect karti hai, wo public services ko behtar banane mein lagati hai. Before knowing some ways to save income tax, let’s understand how income tax works in India.
According to the Constitution of India, Schedule VII under the Union List, the Centre has the power to levy taxes on any income (other than agricultural income). The government gets its biggest portion of revenue from income tax. As per budget 2019-20, there is no significant change in income tax slabs, which remain the same as they were for 2018-19. Generally, there are two categories of income tax slab rates:
Individuals and the Hindu Undivided Families (HUF’s)
As a citizen of India, it is mandatory for every self-employed (aap ka khud ka business hai) or salaried person (ya aap kisi ke liye job karte hain) to pay income tax. Filing an annual ITR is compulsory, but there are some exemptions, so that you can save!
|Persons Covered||Exemption Limit|
|Self and family||Rs.25,000|
|Self and family + parents||Rs.(25,000 + 25,000) = Rs.50,000|
|Self and family + senior citizen parents||Rs.(25,000 + 50,000) = Rs.75,000|
|Self (senior citizen) and family + senior citizen parents||Rs.(50,000 + 50,000) = Rs.1,00,000|
Since you can receive these Income Tax exemptions, humein umeed hai ki ab aap ache nagrik ki tarah tax bharenge bhi or bachayenge bhi!
Also, check out how investing in tax saving fixed deposit will help you to save tax in India