Income Tax Free UPTO 13.7 Lakh Rupees Annual Income With The Investment in NPS New Tax Slab States

Income tax calculation: The Government of India has announced to pay tax free to up to 12 lakhs annually. The income of up to 12 lakh 75 thousand with standard deduction is tax free. But do you know that you will not have to pay a penny tax even on one lakh more income than this. That is, on the income of up to 13 lakh 70 thousand, you will have to pay zero income tax. Just for this you have to make such an investment, which is going to prove to be a great use for you in old age. That is, mangoes and kernels prices. You can avoid paying tax on income up to 13 lakh 70 thousand by investing in NPS i.e. National Pension System.

This mathematics will also save you from tax on 13.70 lakh income

If there is a salary person, there is a benefit of deduction in income tax on investing up to 14 percent of basic salary in NPS. Suppose your salary is 13 lakh 70 thousand rupees. Its basic salary can be up to 6 lakh 85 thousand. 14 percent of six lakh 85 thousand will be 95 thousand 900 rupees. That is, by depositing so much in NPS, you can get the benefit of deduction in income tax.

Add 75 thousand standard deduction to it. So the total amount becomes one lakh 70 thousand thousand for deduction. According to the Income Tax Slab, the annual income of up to 12 lakhs is not to be taxed in the same way. After adding one lakh 70 thousand rupees of NPS deduction and standard deduction, income of up to 13 lakh 70 thousand can be tax free in this way.

Employer will depend on the impression

However, it is not so easy to get rid of tax hassle on income up to 13 lakh 70 thousand. This is possible only when the employer gives NPS benefits as part of the company’s cost. Staff cannot choose it themselves. The NPS was started about 10 years ago, but barely 22 lakh taxpayers have invested in it.

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