If your monthly salary is ₹50,000, you should be aware of the possible income tax you could have to pay. Knowing your tax for ₹50,000 salary per month facilitates better financial planning and budgeting. Allow us to dissect it straightforwardly and precisely.
Should your monthly salary be ₹50,000, ₹50,000 × 12 months equals ₹6,00,000 annually. Before any deductions, your gross yearly pay is this.
Calculation of Taxes (Old Regime)
You can claim deductions like:
- Standard Deduction: ₹50,000
- Section 80C—Investments including PPF, LIC, ELSS, etc.—₹1,50,000
Calculation:
₹6,00,000 – ₹50,000 – ₹1,50,000 = ₹4,00,000
Let us thus apply the income tax slabs:
- 0 to ₹2.5 lakh = Not taxed
- 5% of ₹1.5 lakh = ₹7,500 (₹2.5 lakh to ₹5 lakh)
But since you qualify for Section 87A rebates (up to ₹12,500), tax = ₹0.
✅ Old Regime Final Tax: ₹0 should you properly claim deductions.
Calculating Taxes under the New Regime without Deductions
Under the new government regime, this is how things operate: no deductions like 80C permitted.
- Nil for ₹0 to ₹3 lakh
- 3 lakh to ₹6 lakh = 5% of ₹3 lakh = ₹15,000
- Minus rebate under Section 87A, up to ₹25,000
✅ Final Tax (New Regime): ₹0
What Would Happen Should You Not Invest in 80C?
If you overlook 80C investments:
- Standard deduction = ₹6,00,000 – ₹50,000 = ₹5,50,000
- Tax: ₹2.5 lakh to ₹5 lakh = 5% = ₹7,500
- ₹5 lakh to ₹5.5 lakh = 20% of ₹50,000 = ₹10,000
- Total Tax: ₹7,500 + ₹10,000 = ₹17,500
- Minus ₹12,500 rebates = ₹5,000
Final Tax: ₹5,000 (approx.)
Tax for ₹50,000 Salary Per Month: Scenario
- With 80C + Standard Deduction: ₹0
- New Regime (No Deductions): ₹0 (with a refund)
- Without 80C, Standard Deduction: ₹5,000 only
Closing Notes
If your salary is ₹50,000 per month, you can avoid or reduce tax by using deductions under the old tax regime. Plan your savings smartly, invest in tax-saving options, and you might not have to pay any tax at all.