No More Taxes, More Savings—Turn ₹1.79 Lakh into ₹3 Lakh with Smart Investments

1. What Happened Before the Budget?

Imagine you have a salary of ₹12,00,000 per year. Before the new budget, the government would take around ₹1,79,400 as tax from you. That means, after paying tax, you would only have ₹10,20,600 in your pocket. Below is the explanation of Tax ₹1,79,400 deduction.

Under the earlier tax regime, the tax slabs were as follows:

• Up to ₹2,50,000: No tax
• ₹2,50,001 to ₹5,00,000: 5%
• ₹5,00,001 to ₹10,00,000: 20%
• Above ₹10,00,000: 30%

Tax Calculation for ₹12,00,000 Income:

• First ₹2,50,000: No tax
• Next ₹2,50,000 (₹2,50,001 to ₹5,00,000) at 5%: ₹12,500
• Next ₹5,00,000 (₹5,00,001 to ₹10,00,000) at 20%: ₹1,00,000
• Remaining ₹2,00,000 (₹10,00,001 to ₹12,00,000) at 30%: ₹60,000

Total Tax: ₹1,72,500

Cess (4%): ₹6,900

Total Tax Payable: ₹1,79,400

2. What Changed After the Budget?

The government made a new rule: If you earn up to ₹12,00,000, you don’t have to pay any income tax! This means you get to keep your full salary of ₹12,00,000 instead of giving ₹1,79,400 to the government.

Tax Savings:

The individual saves ₹1,79,400 in taxes due to the increased exemption limit.

3. How Much Money Did You Save?

Because of this new rule, you saved ₹1,79,400, which you would have otherwise paid as tax.

4. What Can You Do With This ₹1,79,400?

Option 1: Mutual Funds (Higher Returns, Some Risk)

• In 3 years, your money can grow to ₹2,52,000
• In 5 years, it can become ₹3,16,000
• This option has higher growth potential but also comes with some risk.

Option 2: Fixed Deposit (Safe, But Lower Returns)

• In 3 years, your money will grow to ₹2,13,500
• In 5 years, it will become ₹2,40,000
• This option is very safe, but the growth is slower.

Option 3: Stock Market (Higher Risk, Higher Reward)

• If the market grows well, your money could double in 5-7 years.
• But there is also a chance of loss if the market goes down.

5. Final Thoughts

Earlier, you had no choice but to give ₹1,79,400 as tax to the government. Now, with the new rule, you get to keep that money and make it grow! Depending on how you invest, your ₹1,79,400 can turn into ₹2,50,000 or even ₹3,00,000+ in a few years.

Would you like help choosing the best investment based on your goals?