ITR filing season: Pay zero tax on Rs 10 lakh annual income; know calculations here

In the Budget 2024, the standard deduction has been increased from Rs 50,000 to Rs 75,000 under the new tax regime. The government has also made other changes in the tax slabs. According to new rules, a person whose salary is up to Rs 7.75 lakh per annum, does not need to pay any tax. But if your salary is more than Rs 7.5 lakh, then also you can save the entire tax.

The last date to file an income tax (ITR) return is July 31, 2024, for the financial year 2023-24.

Suppose, your salary is Rs 10 lakh per annum, then you need to pay zero tax on your income.

Here is how you can save full tax on an income of Rs 10 lakh per year.

To avail of income tax benefits on income up to Rs 10 lakh, 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 earnings. 

If you choose the old tax regime, you get a standard deduction of up to Rs 50,000. The standard deduction is the amount that is already deducted from the total income. 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 that provide 80C benefits like PPF, EPF, and NSC, then you can save tax up to Rs 1.5 lakh under Section 80C. In such a situation, if we subtract another Rs 1.50 lakh from Rs 9.50 lakh, the taxable income will be Rs 8 lakh.

- If you invest up to Rs 50,000 annually in NPS, then you are given an additional tax exemption of Rs 50,000 under Section 80CCD (1B). In such a situation, after deducting Rs 50 thousand from Rs 8 lakh, the taxable income remained Rs 7.50 lakh.

People who have taken a home loan can save up to Rs 2 lakh on its interest under Section 24B of Income Tax. Now if you subtract Rs 2 lakh from Rs 7.50 lakh, you will be left with Rs 5.50 lakh.

- If you have taken a medical policy, then you can save tax up to Rs 25 thousand under Section 80D of Income Tax. If your name, your wife, and your children's name are also included in health insurance, then you can get an extra discount of up to Rs 50,000.

In such a situation, if you subtract Rs 75,000 from Rs 5.50 lakh, your income will be reduced to Rs 4.75 lakh. Since there is no tax on income up to Rs 5 lakh in the old tax regime, there will be no tax on you. In this way, you can make income up to Rs 10 lakh tax-free.