Income tax

Dear sir 

considering ur data given if u r planning to invest in ppf then u can open the account of Rs 120000. Deduction will be u/s 80C

Plus u can invest in NPS(national pension scheme) to the extent of Rs 50000. Deduction will be u/s 80CCD(1)

plus check ur salary structure as well.

there are various deduction available to employees but for that I need to check ur salary structure.

 If u need any further assistance regarding filling of return then u can contact me.

Please rate 5 & provide valuable feedback so that I can improve my answer in future

Considering the above details tax on above income under old regime would be 441320 and under new regime would be 400920 and accordingly monthly deduction because of tax would be around 37000 and under new regime would be 33500 respectively.

If you invest in PPF it will surely save some tax under old regime but not under new regime.

If you need detailed tax consultation we can have a phone consultation.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hi

Based on the above limited information, tax deduction would be round 33-35k per month.

However, for proper tax calculations, we would need details of your salary structure. 

You may contact us personally for detailed calculations.

Dear Sir,

Hope you are doing well !!

Hello,

Yes, investment in PPF would bring additional deduction u/s. 80C, if you opt for the old scheme of taxation from this year.

However, as per the salary details provided by you, the new scheme of taxation without any deductions would be beneficial for you.

For complete income tax planning, you can contact us directly at or take a phone consultation.

Regards,

CA Hunny Badlani

- If you avail the option of new tax regime then you need to pay tax of Rs.4 lacs p.a.. Under old option it is 3.99 lacs subject to investment of Rs.1.50 lacs in 80C and 50k u/s 80CCD1(B) i.e. NPS. Assuming you don't have any income from business or profession.

Dear Sir,

Here is my reply to your query:

As per the details provided by you, below will be the total income tax for the FY 2020-21, if you will not be investing any more amount:

Tax Payable:

OLD Regime of Income Tax Calculation - 4,56,924

NEW Regime of Income Tax Calculation- 4,00,920

New Regime will be beneficial in this case 

*Total Deductions will be Rs. 70,500 and recurring deposit will not be a part of these deductions.

Now, if you want to invest in PPF or any other available option then you can invest maximum up to Rs. 85,000 to avail the maximum available exemption that is Rs. 1,50,000 under section 80C of the Income Tax Act.

Moreover, you can invest Rs. 50,000 more in NPS (National Pension scheme) to avail further deduction of Rs. 50,000.

Also, you can invest Rs. 19,500 further in medi-claim policy of your own and your family (dependent on you) to claim the maximum allowable deduction amounting to Rs. 25000.

Assuming that you will do the maximum investment as possible to claim the maximum allowable deductions, in that case tax liability will be :

OLD Regime of Income Tax Calculation - 4,08,720

NEW Regime of Income Tax Calculation- 4,00,920

New Regime will be beneficial in this case  also.

Let me know if you still have any other points to discuss.

Stay Home Stay Safe! 

Thanks and Regards 

Divya Chugh 

What is your Provident Fund deduction by the employer. Total deduction availabale under sec 80C is 150000.Currently, you have investments of 65K under 80C. If your PF is 30K(assumed) you can invest 55k in PPF to avail full 150000 deduction. Health Insurance will be covered under 80D. So your current tax liability is 414,804