💰 What is Income Tax?
Income tax is a tax on your earnings. Government collects it to fund public services.
Simple Meaning:
Earn ₹10 lakhs → Pay tax → Keep remaining
📊 Income Tax Slabs 2026
₹0 - ₹2.5L: 0%
No tax
₹2.5L - ₹5L: 5%
₹12,500 tax on ₹5L income
₹5L - ₹10L: 20%
₹1,00,000 tax on ₹10L income
₹10L+: 30%
Highest tax rate
✂️ Tax Deductions (80C)
Up to ₹1.5 Lakh Deduction:
- PPF contribution
- Life insurance premium
- ELSS investment
- Home loan principal
- Tuition fees
💡 Other Deductions
Section 80D
Health insurance: ₹25,000
Section 80CCD
NPS contribution: ₹50,000
HRA
House rent allowance
LTA
Leave travel allowance
🎯 How to Save Tax?
✓ Invest in PPF
✓ Buy ELSS funds
✓ Get health insurance
✓ Contribute to NPS
✓ Claim HRA/LTA
📝 Filing ITR
Who should file?
Income > ₹2.5L
Deadline:
July 31 every year
💰 Tax Calculation Example
Without Deductions
Gross Income: ₹10,00,000
Tax (20%): ₹2,00,000
Take Home: ₹8,00,000
With Deductions
Gross Income: ₹10,00,000
80C Deduction: -₹1,50,000
Taxable Income: ₹8,50,000
Tax (20%): ₹1,70,000
Take Home: ₹8,30,000
❓ Frequently Asked Questions
Is income tax mandatory?
Yes, if your income exceeds ₹2.5 lakhs per year.
Can I reduce my tax?
Yes, through legal deductions like PPF, ELSS, insurance.
What if I don't file ITR?
Penalty of ₹5000-10000 and legal action possible.
Can I file ITR online?
Yes, on income-tax.gov.in. It's free and easy.
Save Tax Legally
Plan your investments wisely to reduce tax burden.