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What is Tax Deduction?
Tax deduction are some relief that you can take to reduce your taxable income and your over all income tax.
Since you already know that in India we have two Income Tax system . One is the old tax regime and the second is the new tax regime.
The first we talk about the tax exemption you can get in the new tax regime:
So in new tax regime we have two deductions are 80JJAA & 80CCD(2). Other deductions are not allowed in the new tax regime.
Let us look at 80JJAA First.
You can use this deduction if your run a business or your hire peoples. 80JJAA says that, If your hire people and your give them salary below 25,000 INR per month & they work for 4 Momths at least. Then, your can get tax benefit up to 30% of your total employer cost in a financial year for 3 years.
Let, Assume you hire 3 new people for this year.
You give each of them 12,000 INR per month as salary.
Then, Your net cost = 12,000 x 3 INR
= 36,000 INR
Your Tax deduction will be = 36,000 x 30% INR
= 10,800 INR
Thus, 10,800 INR will be deducted from your income for 3 years.
You can calculate 80JJAA here
| 80JJAA | Enter your Data |
|---|---|
| Net Employee Add In this year | |
| Monthly Salary Of Each Employee (limit 25,000 INR) | |
Now, Talk about 80CCD(2).
You can get this tax deduction on your Income Tax if you are a employee of state government, PSU or Central Government employee.
- In case of State Government employees you can get tax benefit 10% of your salary.
- In case of Central Government employees Tax benefit 14% of salary.
| 80CCD(2) | Data |
|---|---|
| If Your are State Government Employee | |
| If You are Central Government Employee | |
