Pay zero income tax on Rs 10 lakh salary; check calculation to save money (2024)

FAQs

How do I make my taxable income 0? ›

If you're married filing jointly, you fall into the 0 percent bracket if your taxable income – defined as your adjusted gross income minus your deduction, either standard or itemized – is less than $89,250 in 2023. If you file as an individual, you'll need to hit $44,625 for the special bracket.

You are still in a good position if you make 10LPA and you live with a flat mate in Chennai or Bangalore. I would also include Hyderabad in this list. You are barely surviving with 10 LPA if you choose Mumbai or Delhi. The rents are super high and cost of living is also equally high.

Taxpayers will get a standard deduction of Rs 50,000 from their total gross salary income. In addition, family pensioners opting for the new tax regime can claim a standard deduction of Rs 15,000 from their pension income.

Claim house rent allowance u/s 10(13A) and as CTC is 12 lac then they might be deducting PF so take deduction into section 80C for it. If PF contribution deducted from your salary is less than 1,50,000 Rs.

An IRS Verification of Nonfiling Letter (VNF) will provide proof from the IRS that there is no record of a filed tax form (1040, 1040A, or 1040EZ) for the year you have requested.

Is 1 lakh a good salary in India? Yes, earning 1 lakh per month is considered a good salary in India. It translates to INR 12 lakhs per annum, which is a substantial amount of money in India and can provide a comfortable standard of living, especially in smaller cities or towns.

What is a good salary in India? Good pay with the average level of life is approximately Rs 30,000 – 35,000 per month if we talk about the average when all the aspects are taken into account.

Like the income tax brackets, the standard deduction gets an annual adjustment for inflation. But next year's bump is one of the biggest yet. The standard deduction is increasing by $900 to $13,850 for singles in 2023 and by $1,800 to $27,700 for couples.

What is the new tax deduction for 2023? ›

Standard deduction increase: The standard deduction for 2023 (which'll be useful when you file in 2024) increases to $13,850 for single filers and $27,700 for married couples filing jointly. Tax brackets increase: The income tax brackets will also increase in 2023.

If opting for old income tax regime

There are certain tax exemptions that can be claimed from salary income. These include tax exemptions on house rent allowance (HRA), leave travel concession (LTC) and a standard deduction of Rs 50,000. Further, apart from salary income, an individual may have other incomes as well.

Individuals who fall below the minimum may still have to file a tax return under certain circ*mstances; for instance, if you had $400 in self-employment earnings, you'll have to file and pay self-employment tax. If you have no income, however, you aren't obligated to file.

The IRS receives information from third parties, such as employers and financial institutions. Using an automated system, the Automated Underreporter (AUR) function compares the information reported by third parties to the information reported on your return to identify potential discrepancies.

In some instances, you will need to verify your identity and tax return information with the IRS. This helps prevent an identity thief from getting your refund.

The basic gift tax exclusion or exemption is the amount you can give each year to one person and not worry about being taxed. The gift tax exclusion limit for 2022 was $16,000, and for 2023 it's $17,000. That means anything you give under that amount is not taxable and does not have to be reported to the IRS.

The total gift amount must be quite substantial before the IRS even takes notice. For tax year 2022, if the value of the gift is $16,000 or less in a calendar year, it doesn't even count. For tax year 2023, this increases to $17,000. The IRS calls this amount the annual gift tax exclusion.

How many people in India have 10 lakh income? ›

Similarly, the income bracket above Rs 10 lakh per annum, as a proportion of total taxpayers, has grown from 5.6% in FY15 to 12.8% in FY21. The largest single-year jump in this category was seen between FY20 and FY21, from 54 lakh taxpayers to 81 lakh taxpayers in the above Rs 10 lakh per annum income bracket.

The national average salary for a 10 LPA is ₹10,84,031 in India. Filter by location to see 10 LPA salaries in your area.