Income of 7.75 lakhs has become tax-free directly..but if you earn even 10 lakhs, will you save income tax? Understand the math

In the budget presented on 23 July, Finance Minister Nirmala Sitharaman has given a big exemption under the New Tax Regime and increased the standard deduction from Rs 50,000 to Rs 75,000. In such a situation, income of 7.75 lakhs has become tax-free. But even if your income is up to 10 lakhs, you can still save your tax.

The country's general budget (Union Budget 2024) has been presented on 23 July. In the first budget of Modi tenure 3.0, people have been given a big relief regarding income tax. In this, giving a big discount under the New Tax Regime, the Standard Deduction has been increased from Rs 50,000 to Rs 75,000. At the same time, some changes have also been made to the tax slab. That is, now the income of 7.75 lakhs has become tax-free for those who choose the New Tax Regime. But even if someone's annual income is Rs 10 lakh, you can save your income tax completely. You will not have to pay even 1 rupee as tax. Understand the math-

This is how you will save tax on an income of 10 lakhs.

- To get income tax benefits on income up to 10 lakhs, you will have to switch to the Old Tax Regime. In this, you can claim many types of deductions and save income tax on many types of income. Understand how-

- If you choose the old tax system, you get a standard deduction of up to Rs 50,000. The standard deduction is the amount that is deducted from the total income beforehand. In such a situation, the taxable income of a person earning Rs 10 lakh becomes Rs 9.50 lakh.

- If you have invested in schemes like PPF, EPF, and NSC which give the benefit of 80C, then you can save tax of up to Rs 1.5 lakh under 80C. In such a situation, if you deduct another 1.50 lakh from 9.50 lakh, then the taxable income will become Rs 8 lakh.

- If you invest up to Rs 50,000 annually in NPS, then under section 80CCD (1B) you are given an extra tax exemption of Rs 50,000. In this case, if you subtract 50 thousand from 8 lakh, the taxable income remains 7.50 lakh rupees.

- People who have taken home loans can save up to 2 lakh rupees on interest under section 24B of Income Tax. Now if you subtract 2 lakh rupees from 7.50 lakh, then 5.50 lakh rupees are left.

- If you have taken a medical policy, then you can save tax up to 25 thousand rupees under section 80D of Income Tax. At the same time, if your name, your wife's, and your children's names are also included in the health insurance, then you can get an extra exemption of up to 50,000 rupees.

- In this case, now if you subtract 75,000 rupees more from 5.50 lakh rupees, then your income will be 4.75 lakh rupees. Since there is no tax on income up to 5 lakh rupees in the old tax regime, in this case, no tax will be levied on you. In this way, you can make income up to Rs 10 lakh tax-free.