What is the tax on 12 lakhs CTC?
Table of Contents
What is the tax on 12 lakhs CTC?
New income tax slabs for individuals for FY 2020-21
| Income Tax Slab | Tax Rate |
|---|---|
| From Rs.10,00,001 to Rs.12,50,000 | 20\% of the total income that is more than Rs.10 lakh + 4\% cess |
| From Rs.12,50,001 to Rs.15,00,000 | 25\% of the total income that is more than Rs.12.5 lakh + 4\% cess |
What is the tax for 12 LPA in India?
Tax to be paid 12 lakhs, they will be paying a 30\% tax on Rs. 12 lakhs i.e Rs. 3,60,000.
How can I save tax on my salary under 12 lakhs?
That’s Great! What are the Tax Saving Options u/s 80(C)?
- Investments in PPF (Public Provident Fund)
- Investments in EPF (Employee Provident Fund)
- Investments in ELSS funds (Equity-Linked Savings Scheme)
- Investments in NSC (National Savings Certificates)
- Payment of premiums against Life Insurance Policies.
What will be take home salary if CTC is 12 lakhs?
General Comparison Chart For Approximate Understanding by Ck
| Band | CTC (Yearly) | In Hand Salary |
|---|---|---|
| A | 20 lakh | 1,15,000 per month |
| B | 15 lakh | 95,000 per month |
| C | 12 lakh | 82,000 per month |
| C | 10 lakh | 63,000 per month |
How can I save tax on 15 lakhs?
1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)
- Unit Linked Insurance Plans (ULIPs)
- Pension or Annuity Plans from Life Insurance Companies.
- Public Provident Fund (PPF) & Employee Provident Fund (EPF)
- New Pension Scheme Tier-I Account.
- Senior Citizen Savings Scheme.
How much tax will I pay if I earn 12 lakhs?
Income Tax on Rs 12 lakh income Without Exemptions/Deductions, the tax calculator shows those earning Rs 12 lakh annual income will have to pay Rs 1,19,600 as tax as per the new regime. The tax payable under the old regime without exemptions and deductions will be Rs 1,79,400. Thus the total tax benefit as per new regime would be Rs 59,800.
What are the deductions from CTC in salary?
So complete 25\% will be deducted from your CTC. Gratuity: This component will be paid if you have stayed in the company for more than 5 years, but companies will also add this to your CTC. Hence this will also lead to the deductions from your in-hand salary.
Should CTC be reflected in the salary slip?
If the CTC of an employee undergoes any revision (cut or hike), then such revision should be reflected in the individual’s salary slip as well i.e. the components of the salary such as basic, HRA, special allowance etc. should be revised in the similar fashion.
How can I reduce my tax liability and increase my takehome salary?
Home loan – If you have bought a home on loan then you can claim interest paid of upto ₹2,00,000 as a deduction. The principal amount would be allowed as deduction under Section 80C. You can use these methods to reduce you tax liability and increase your takehome salary. Hope this helps.