Understanding Tax Deductions: What's the Minimum Salary for Eligibility?

Minimum how much salary is eligible for tax deduction?
How is tax deduction calculated? I am new in this field so please help me.

For salary up to Rs.5,999: Nil

For salary between Rs.6,000 to Rs.8,999: Rs.80

For salary between Rs.9,000 to Rs.11,999: Rs.150

For salary of Rs.12,000 and above: Rs.200

According to me, if any person is earning above 2.5 lakhs, then they need to pay tax.

For incomes between 2.5 lakhs to 5 lakhs, the tax rate is 10%. For incomes between 5 lakhs to 10 lakhs, the tax rate is 20%. For incomes above 10 lakhs, the tax rate is 30%.

As per the latest slab, up to 300,000, there is no tax liability. From 300,000 to 500,000 = 5%, 500,000 to 1,000,000 = 10%.

Thank you.

Income Tax Calculation Overview

The calculation of income tax is quite vast. It can be both simple and complex, depending on the scenario and applicable conditions.

Current Income Tax Slabs

In simple terms, the present income tax slab for the financial year is as follows:

Income up to Rs. 3.00 L = NIL (Tax-Free Income)

Note: Tax-free income is applicable only if it is up to Rs. 3.00 L. If it exceeds this amount, revised rates will be applicable as per below:

Income more than Rs. 3.00 L and up to Rs. 5.00 L = @ 5% from Rs. 2.50 L to Rs. 5.00 L (Rs. 12,500/-).

Income from Rs. 5 L to Rs. 10 L = @ 20% (Rs. 1.00 L)

Income more than Rs. 10 L = @ 30%

Cess on tax is extra (as applicable).

In the current year, the 10% tax slab is not applicable. Also, note that while calculating income for tax purposes, different kinds of exemptions and deductions apply to different types of taxpayers.

Considerations for Salary Taxpayers

However, in the case of salary taxpayers, the following need to be considered:

Exemptions

- HRA = As per applicable criteria (maximum 50% of basic or HRA received).
- Conveyance = Maximum Rs. 19,200
- Medical = Maximum Rs. 15,000

Deductions

- Under Section 80C = Up to Rs. 1.50 L (common deduction, applicable to all)
- NPS = Rs. 50K
- Other deductions = As applicable

The calculation of the tax slab is made after adjusting the exemptions and deductions.

I hope I have clarified your points. If you have any specific queries, please share them so that fellow members can provide clarification.