Want to reduce your taxable income to Rs 5 lakh? Here's a list of all deductions you can claim

February 06, 2019 |
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Want to reduce your taxable income to Rs 5 lakh? Here's a list of all deductions you can claim

Interim Budget 2019 has proposed rebate on full income tax liability for all those earning up to Rs 5 lakh taxable income for FY2019-20. This is a huge incentive for tax planning for the low and middle income group. All those whose gross total income (GTI) is close to this magical figure can try to claim eligible deductions from their GTIs to reduce it to a taxable income figure of Rs 5 lakh or below. 

Tax on your income is calculated as follows: First gross total income is calculated by adding income from all sources then all deductions (tax breaks) and other tax-exempted allowances (HRA, LTA etc.) that you can claim are subtracted from this figure. The net result is taxable income. It is this resulting taxable income figure level which will decide whether you can avail the 100% tax rebate given to that earning upto Rs 5 lakh taxable income, as per Budget 2019 proposals. 

 

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