Tax Saving Schemes
Taxation
As per the Income Tax Act, 1961, it is mandatory for you to make income tax payments if your annual income is above the minimum exemption limit.
All About Tax Structure In India.
| Income Tax slab | Tax applicable |
|---|---|
| Up to Rs. 2,50,000 | Nil |
| From Rs. 2,50,001 to Rs. 5,00,000 | 5% |
| From Rs. 5,00,001 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Applicable for Old Tax Regime
How does taxation work in India?
The tax structure in India is divided into direct and indirect taxes. While direct taxes are levied on taxable income earned by individuals and corporate entities, the burden to deposit taxes is on the assesses themselves.
Why Tax Saving Funds?
Here is how tax saving funds (ELSS) beat almost every other tax saving option under section 80C
There are two schemes under which the income tax can be filed as of 2025 check your tax liability now
| Investment | Lock-in Period | Historical Returns | Is Return Taxable? |
|---|---|---|---|
| Tax Saving(ELSS) funds | 3 Years | 12-14% | Capital gain is taxable |
| Life Insurance | 5 Years | 0-6% | No Tax |
| PPF | 15 Years | 8.50% | No Tax |
| NSC | 5/10 Years | 8.50% | Interest is Taxable |
| 5 Years Bank FD | 5 Years | 9.50% | Interest is Taxable |