{"id":68209,"date":"2025-01-06T18:50:49","date_gmt":"2025-01-06T13:20:49","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=68209"},"modified":"2025-01-06T18:50:51","modified_gmt":"2025-01-06T13:20:51","slug":"how-to-save-tax-for-salary-above-7-lakhs","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/","title":{"rendered":"How to Save Tax for Salary Above 7 Lakhs?"},"content":{"rendered":"\n<p>As your income increases, so does your tax liability. If you come in the bracket of earning more than \u20b97 lakhs per annum, it becomes extremely essential to understand how to save on taxes to keep your hard-earned money. Given the changes in the Indian tax laws and the new provisions made in Budget 2024, there are increased avenues for optimizing one&#8217;s tax burden.<\/p>\n\n\n\n<p>In this blog, we are going to consider some of the effective ways of saving taxes, comparing the new with the old tax regime, and providing some actionable insight for taxpayers.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#Understanding_the_Basics_of_Taxation\" >Understanding the Basics of Taxation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#Key_Changes_in_the_2024_Budget\" >Key Changes in the 2024 Budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#Talk_To_Expert\" >Talk To Expert<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#How_to_Save_Tax_for_Salary_Above_7_Lakhs\" >How to Save Tax for Salary Above 7 Lakhs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#Comparing_Old_and_New_Tax_Regimes\" >Comparing Old and New Tax Regimes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#Tax-Saving_Strategies_for_Salaried_Individuals_Above_%E2%82%B97_Lakhs\" >Tax-Saving Strategies for Salaried Individuals Above \u20b97 Lakhs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#How_to_Pay_Zero_Tax_on_a_Salary_of_%E2%82%B97_Lakhs\" >How to Pay Zero Tax on a Salary of \u20b97 Lakhs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#What_to_Consider_Between_Old_and_New_Tax_Regimes\" >What to Consider Between Old and New Tax Regimes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#Practical_Steps_for_Tax_Planning\" >Practical Steps for Tax Planning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#To_Wrap_Up\" >To Wrap Up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/how-to-save-tax-for-salary-above-7-lakhs\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_the_Basics_of_Taxation\"><\/span>Understanding the Basics of Taxation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before diving deep into the tax-saving strategies, it is very important to understand how the Indian tax system works for salaried individuals:<\/p>\n\n\n\n<ul type=\"1\">\n<li><strong>Tax Slabs and Rates:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>India follows progressive taxation, whereby higher tax rates are paid by a category of people with relatively higher incomes. The Budget 2024 has, however, introduced new tax slabs that have eased the structure for those who opt for the new regime.<\/p>\n\n\n\n<ul>\n<li><strong>Deductions and Exemptions:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>These are tools given by the government to help reduce income that is to be subject to tax. The deductions have a specific investment or expenditure that reduces your income, whereas exemptions exclude certain types of income from being taxed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Changes_in_the_2024_Budget\"><\/span>Key Changes in the 2024 Budget<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Union Budget announced key amendments, particularly for individuals earning above \u20b97 lakhs for the Financial Year 2024-25. The following are the highlights of the same:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Revised Tax Slabs (New Regime):<\/h3>\n\n\n\n<ul>\n<li>Income up to \u20b93 lakh: Nil tax.<\/li>\n\n\n\n<li>\u20b93 lakh &#8211; \u20b97 lakh: 5%.<\/li>\n\n\n\n<li>\u20b97 lakh &#8211; \u20b910 lakh: 10%.<\/li>\n\n\n\n<li>\u20b910 lakh &#8211; \u20b912 lakh: 15%<\/li>\n\n\n\n<li>\u20b912 lakh &#8211; \u20b915 lakh: 20%.<\/li>\n\n\n\n<li>Above \u20b915 lakh: 30%.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Talk_To_Expert\"><\/span>Talk To Expert<span class=\"ez-toc-section-end\"><\/span><\/h2><div class=\"calling-person blog_cta my-4\"> \n\n  \n\n    <div class=\"row\"> \n\n        <div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-12\"> \n\n            <div class=\"d-flex flex-nowrap\"> \n\n                <div class=\"user-online\"> <img decoding=\"async\" src=\"https:\/\/corpbiz.io\/img\/user.jpg\" alt=\"corpbiz\"> <\/div> \n\n                <div class=\"user-online-details ms-3 align-self-center\"> \n\n                    <h2 class=\"text-white mt-0\"><span class=\"ez-toc-section\" id=\"How_to_Save_Tax_for_Salary_Above_7_Lakhs\"><\/span> How to Save Tax for Salary Above 7 Lakhs? <span class=\"ez-toc-section-end\"><\/span><\/h2> \n\n                    <p class=\"mt-3\"><i class=\"fa fa-star\"><\/i><i class=\"fa fa-star\"><\/i><i class=\"fa fa-star\"><\/i><i \n\n                            class=\"fa fa-star\"><\/i><i class=\"fa fa-star-half-full\"><\/i><span \n\n                            class=\"ms-2 text-white\">(4.8)<\/span><\/p> \n\n                <\/div> \n\n            <\/div> \n\n          \n\n        <\/div> \n\n     \n\n        <div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-8 mx-auto\"> \n\n            <div class=\"d-flex justify-content-between call-chat\"> <a href=\"tel:919121230280\"> <span>Call Now \n\n            <\/span><img decoding=\"async\" class=\"ms-2\" src=\"https:\/\/corpbiz.io\/admin\/style\/images\/userfiles\/image\/new_call_icon.png\" \n\n                alt=\"Call With \" width=\"32px\"> \n\n        <\/a> <a href=\"https:\/\/api.whatsapp.com\/send?phone=919289379709&#038;text=Hi%20Corpbiz\" target=\"_blank\" rel=\"noopener\"> <span>Chat With Us<\/span><img decoding=\"async\" class=\"ms-2\" \n\n                src=\"https:\/\/corpbiz.io\/img\/chat-with-expert.png\" alt=\"Chat With \" width=\"32px\"> <\/a> <\/div> \n\n        <\/div> \n\n    <\/div> \n\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Higher Standard Deduction:<\/h3>\n\n\n\n<p>This also brings extra relief to salaried people, with the standard deduction increased to \u20b975,000.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Increased Family Pension Deduction:<\/h3>\n\n\n\n<p>Family pension recipients may claim a deduction of \u20b925,000 instead of \u20b915,000.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tax Rebate Under Section 87A:<\/h3>\n\n\n\n<p>Under the new regime, a \u20b925,000 rebate for taxpayers earning up to \u20b97 lakh annually results in zero liability at this income level.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Comparing_Old_and_New_Tax_Regimes\"><\/span>Comparing Old and New Tax Regimes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here&#8217;s a detailed comparison of the old and new tax regimes, broken down into key aspects:<\/p>\n\n\n\n<ul type=\"1\">\n<li><strong>Deductions and Exemptions:<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Old Tax Regime:<\/strong> Comprises too many popular deductions and exemptions, such as Section 80C, 80D, HRA, and LTA.<\/p>\n\n\n\n<p><strong>New Tax Regime:<\/strong> The quantum of deductions is less, aiming toward simplicity with allowances such as the standard deduction and NPS contribution.<\/p>\n\n\n\n<ul>\n<li><strong>Tax Rates:<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Old Tax Regime:<\/strong> Higher rates of tax for most of the slabs, with substantial savings through deductions and exemptions possible.<\/p>\n\n\n\n<p><strong>New Tax Regime:<\/strong> This new tax regime promises lower tax rates on all income slabs, a much simpler regime, and it does not require making hefty investments to save on taxes.<\/p>\n\n\n\n<ul>\n<li><strong>Flexibility:<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Old Tax Regime:<\/strong> This will be more beneficial for people who invest more in tax-saving instruments and can thereby manage their salary structure efficiently.<\/p>\n\n\n\n<p><strong>New Tax Regime:<\/strong> Ideal for those who prefer straightforward tax calculations without the hassle of tracking deductions.<\/p>\n\n\n\n<ul>\n<li><strong>Rebate Under Section 87A:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Both regimes give a rebate on taxable income of \u20b97 lakh, but the new regime has simplified it by not requiring any deductions to get that.<\/p>\n\n\n\n<ul>\n<li><strong>Best Suited For:<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Old Tax Regime: <\/strong>For taxpayers who have substantial investment capacity and want to save more by exemption.<\/p>\n\n\n\n<p><strong>New Tax Regime:<\/strong> For simplicity and lesser scope of investments or deductions preferred by the taxpayers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax-Saving_Strategies_for_Salaried_Individuals_Above_%E2%82%B97_Lakhs\"><\/span>Tax-Saving Strategies for Salaried Individuals Above \u20b97 Lakhs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Optimizing Deductions Under Sec 80C<\/h3>\n\n\n\n<p>Section 80C allows for a deduction of \u20b91.5 lakh on a range of investments and expenses. Some of the important options under this are as follows:<\/p>\n\n\n\n<ul>\n<li>PPF\/Public Provident Fund: a government-backed investment avenue that is considered safe.<\/li>\n\n\n\n<li>ELSS (Equity Linked Savings Scheme): Funds for tax saving, presenting relatively better prospects for return.<\/li>\n\n\n\n<li>Life Insurance Premiums: Payments made towards life insurance policies.<\/li>\n\n\n\n<li>Principal Repayment of Home Loan: Deduction allowed on the principal component of EMI payments.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Health Insurance Premiums (Section 80D)<\/h3>\n\n\n\n<p>Investing in health insurance benefits one&#8217;s health and finances<\/p>\n\n\n\n<ul>\n<li>Claim upto \u20b9 25000 for self and family.<\/li>\n\n\n\n<li>If parents are aged 60 or above, an extra \u20b950,000 is allowed.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">National Pension System (NPS) Contributions<\/h3>\n\n\n\n<p>Under Section 80CCD, the contributions made by an individual to the NPS are allowed additional tax benefits.<\/p>\n\n\n\n<ul>\n<li>\u20b9 50,000 under Section 80CCD(1B).<\/li>\n\n\n\n<li>Contributions by the employer under Section 80CCD (2) are also deductible.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Claim for House Rent Allowance<\/h3>\n\n\n\n<p>If you are a resident and stay in a rented accommodation, you can claim HRA under the old tax regime. You must ensure the following:<\/p>\n\n\n\n<ul>\n<li>Submit receipts of your rent payments as proof.<\/li>\n\n\n\n<li>Structure your salary components in a way to maximize the exemption on HRA.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Home Loan Benefits<\/h3>\n\n\n\n<p>Homeownership can yield dual tax benefits:<\/p>\n\n\n\n<ul>\n<li>Deduction u\/s 80C for repayment of principal.<\/li>\n\n\n\n<li>The deduction available under Section 24 for payment of interest on home loan availed (up to \u20b92 lakh annually on self-occupied properties).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Standard Deduction<\/h3>\n\n\n\n<p>Under the new tax regime, a salaried individual is allowed an upfront deduction of \u20b975,000 with no requirement to keep any receipt for actual expenses incurred, which significantly reduces taxable income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Leverage Section 80TTA<\/h3>\n\n\n\n<p>You can claim a deduction of up to \u20b910,000 under Section 80TTA if you get interest from savings bank accounts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tax-Free Allowances<\/h3>\n\n\n\n<p>Some allowances are exempt from tax. Such are:<\/p>\n\n\n\n<ul>\n<li><strong>Conveyance Allowance:<\/strong> To cover work-related travel.<\/li>\n\n\n\n<li><strong>Leave Travel Allowance:<\/strong> For the purpose of travel expenses on vacation.<\/li>\n\n\n\n<li><strong>Transportation Allowance: <\/strong>Available to specially-abled individuals.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Pay_Zero_Tax_on_a_Salary_of_%E2%82%B97_Lakhs\"><\/span>How to Pay Zero Tax on a Salary of \u20b97 Lakhs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With strategic tax planning, it&#8217;s possible to make your entire tax liability Nil even on a salary of \u20b97 lakh per annum. Here&#8217;s how:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Choose the new Regime:<\/h3>\n\n\n\n<p>The rebate under Section 87A of \u20b925,000 ensures no tax liability for an income of up to \u20b97 lakh.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Maximize deductions in the old regime:<\/h3>\n\n\n\n<ul>\n<li>Invest \u20b9 1.5 lakh u\/s 80C<\/li>\n\n\n\n<li>Claim HRA if renting.<\/li>\n\n\n\n<li>Deduct health insurance premium under Sec 80D.<\/li>\n<\/ul>\n\n\n\n<p>By combining those, your taxable income will be less than \u20b97 lakh, so you will get the rebate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Surcharge and Cess<\/h3>\n\n\n\n<p>For high-income earners exceeding \u20b950 lakh, a surcharge is applied:<\/p>\n\n\n\n<ul>\n<li>10% for income between \u20b950 lakh and \u20b91 crore.<\/li>\n\n\n\n<li>15% in case of income ranging from \u20b91 crore to \u20b92 crore.<\/li>\n\n\n\n<li>25%- for income between \u20b9 2 crore and \u20b95 crore.<\/li>\n\n\n\n<li>25% on income in excess of \u20b95 crore.<\/li>\n<\/ul>\n\n\n\n<p>Further, the Indian taxation act has also levied 4% health and education cess on the total tax payable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_to_Consider_Between_Old_and_New_Tax_Regimes\"><\/span>What to Consider Between Old and New Tax Regimes?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In choosing between the two regimes, consider:<\/p>\n\n\n\n<ul>\n<li><strong>Investment Capability:<\/strong> If one actively invests in tax-saving instruments, then the old regime would turn out to be beneficial.<\/li>\n\n\n\n<li><strong>Simplification: <\/strong>In case one prefers lower rates and fewer deductions, then the new regime is ideal.<\/li>\n\n\n\n<li><strong>Income Levels:<\/strong> Because of the rebate, the new regime will help those who earn below \u20b97 lakh.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Practical_Steps_for_Tax_Planning\"><\/span>Practical Steps for Tax Planning<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Have a look at some of the practical steps for tax planning in India-<\/p>\n\n\n\n<ul type=\"1\">\n<li><strong>Analyze Salary Components:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Break down your salary structure into its various components to find tax-saving opportunities therein, such as HRA and LTA.<\/p>\n\n\n\n<ul>\n<li><strong>Start Early:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Tax planning at the beginning of the financial year will help in reaping maximum benefits.<\/p>\n\n\n\n<ul>\n<li><strong>Consult a Professional:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Engage a tax advisor for personalized guidance based on your financial goals.<\/p>\n\n\n\n<ul>\n<li><strong>Track Expenses:<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Keep all eligible expenses and investments recorded for smooth <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\" title=\"Income Tax Return Filing\">ITR filing<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"To_Wrap_Up\"><\/span><strong>To Wrap Up<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A return of more than \u20b97 lakhs opens a big window for choices on saving taxes, which in itself needs good planning. Be it under the old or new tax regime, only an appropriate understanding of deductions, exemptions, and strategic investments will reduce your liability to the bare minimum.<\/p>\n\n\n\n<p>Keep yourself updated about the changes in the tax laws and avail the benefits accruing from such changes, meaning more money will stay in your pocket.<\/p>\n\n\n\n<p>Remember, effective tax planning is not just about reducing liability, it&#8217;s about creating financial security and meeting your long-term goals. The right approach will help you balance your current needs with future aspirations and avoid all sorts of compliance issues.<\/p>\n\n\n\n<p>To get expert guidance in saving your taxes, visit <a href=\"https:\/\/corpbiz.io\/\">https:\/\/corpbiz.io\/<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3>What are the new tax slabs introduced in the Budget 2024 for income above \u20b97 lakhs?<\/h3><p class=\"saswp-faq-answer-text\">Under the new tax regime for Financial Year 2024-25:<br>\u25cf\u00a0\u00a07 lakh &#8211; \u20b910 lakh: 10%<br>\u25cf\u00a0\u00a0\u20b910 lakh &#8211; 12 lakh: 15%<br>\u25cf\u00a0\u00a012 lakh &#8211; \u20b915 lakh: 20%<br>\u25cf\u00a0\u00a0\u00a0Above 15 lakh: 30%<\/p><li style=\"list-style-type: none\"><h3>Is there any way to save tax on salary above \u20b97 lakhs under the 80C provisions?<\/h3><p class=\"saswp-faq-answer-text\">Section 80C is applicable on deductions for investments or expenses made in the following:<br>&#8211; Contribution to a Public Provident Fund (PPF)<br>&#8211; Investment in Equity Linked Savings Scheme (ELSS)<br>&#8211; Payment of life insurance policies<br>&#8211; Home loan principal repayment<\/p><li style=\"list-style-type: none\"><h3>Is HRA exemption available to salaried persons under the new tax regime?<\/h3><p class=\"saswp-faq-answer-text\">HRA is available only in the old regime as the new tax system has no such provisions for exemptions like House Rent Allowance (HRA). But in the new tax regime HRA can be claimed in the old tax system through reimbursement of rent receipts along with necessary salary restructuring regards to allowances.<\/p><li style=\"list-style-type: none\"><h3>What kind of relief does the tax rebate under Section 87A provide to a taxpayer whose annual income is 7 lakhs?<\/h3><p class=\"saswp-faq-answer-text\">Section 87A provides a rebate of up to \u20b925,000 to all individuals whose income is Rs 7 lakhs or less making that person free from tax without availing any deduction or exemption.<\/p><li style=\"list-style-type: none\"><h3>What deductions are available for health insurance premiums?<\/h3><p class=\"saswp-faq-answer-text\">Under Section 80D, you can claim:<br>&#8211; Up to 25,000 for self and family<br>&#8211; An additional \u20b950,000 for senior citizen parents<\/p><li style=\"list-style-type: none\"><h3>What are the dual benefits of home loans for tax saving?<\/h3><p class=\"saswp-faq-answer-text\">Home loans provide tax benefits under:<br>\u25cf\u00a0Section 80C: Deduction on the principal repayment (up to 1.5 lakh)<br>\u25cf\u00a0Section 24: Deduction on interest payments (up to 2 lakh annually for self-occupied properties)<\/p><li style=\"list-style-type: none\"><h3>How do I decide between the old and new tax regimes?<\/h3><p class=\"saswp-faq-answer-text\">Choose based on:<br>\u25cf <strong>Investment capability: <\/strong>The old regime is beneficial for those investing heavily in tax-saving instruments.<br>\u25cf <strong>Simplification:<\/strong> Opt for the new regime for lower rates and easier calculations without extensive investments.<br>\u25cf <strong>Income levels:<\/strong> For income below \u20b97 lakh, the new regime is ideal due to the Section 87A rebate.<\/p><\/ul><\/div>\n\n\n<p><strong>Read our blog:<\/strong> <a href=\"https:\/\/corpbiz.io\/learning\/what-is-itr-4-in-income-tax-return-filing\/\">What is ITR 4 in Income Tax Return filing?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As your income increases, so does your tax liability. If you come in the bracket of earning more than \u20b97 lakhs per annum, it becomes extremely essential to understand how to save on taxes to keep your hard-earned money. Given the changes in the Indian tax laws and the new provisions made in Budget 2024, [&hellip;]<\/p>\n","protected":false},"author":85,"featured_media":68212,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,152],"tags":[],"acf":{"service_id":"78"},"authorName":"Shuchi Saxena","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/suchi.png","authorDescription":"Shuchi Saxena is an experienced business advisor with 10+ years of experience in management consulting. Maintaining a creative flow while writing content comes naturally to her. 99.2% of her writeups are problem-solving and help readers get what they intend to look out for. Her expertise lies in Startup Advisory, Regulations, Consulting, Environmental Advisory, etc.","postViews":1259,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/68209"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/85"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=68209"}],"version-history":[{"count":4,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/68209\/revisions"}],"predecessor-version":[{"id":68214,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/68209\/revisions\/68214"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/68212"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=68209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=68209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=68209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}