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(iv) All unaccounted income should be declared. If such a disclosure is conducted before its detection via the Income Tax Department, the probability of being trapped in the tax raid are minimized.
Because of your increasing tax rate of higher brackets, a reduction of taxable income at a higher bracket saves you more tax than pertaining to reduction at a very lower range. So let's compare the tax saving of contributing $1000 by an individual with a $30,000 income with a single person with a $100,000.
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