New Tax Regime: If you do smart planning and invest correctly, then you will not have to pay a single rupee income tax even on income up to 19 lakhs.
Smart Investments: If your income is also more than 12 lakhs, then this news is for you. Under the New Tax Regime of the Government of India, income up to Rs 12 lakh is tax-free. At the same time, this limit including standard deduction for the salaried class is Rs 12.75 lakh. But imagine if your annual salary is Rs 19 lakh and still you do not have to pay a single rupee tax.
Yes, you read it right. In the New Tax Regime of the government, if you do smart planning and invest correctly, then you will not have to pay a single rupee income tax even on income up to 19 lakhs. Today we will tell you how you can make income up to Rs 19 lakh completely tax free.
Standard deduction up to Rs 75,000
The government has made the new tax regime the default from the financial year 2025-26. That is, unless a taxpayer chooses the old tax regime, he will have to pay tax under the automatic new tax regime. The new tax slab has been simplified from this financial year. Along with this, there are provisions for some deductions as well. In the new tax regime, a standard deduction of Rs 75,000 is being given to all salaried class people.
Zero tax on income up to Rs 19 lakh
If your CTC is Rs 19 lakh, then you can design your salary structure in such a way that you can make the entire salary tax free.
Rs: Rs 3,06,900
Total CTC: Rs 19,00,000
It can be understood like this. Suppose your CTC is Rs 19 lakh. After deducting standard deduction from this, the balance will be – 19,00,000-75,000 = Rs 18,25,000
After this, after deducting EPS and NPS – Rs 18,25,000 – (Rs 21,600 + Rs 1,33,000) = Rs 16,70,400. Under the new tax regime, a maximum of 14% of the employee’s basic salary as NPS contribution is tax free. Apart from this, a maximum of 12% of the basic salary DA is tax free.
Use flexi payment
Apart from this, some companies also give the option of choosing flexi pay. This is also tax free. Under this, you can keep three lakh rupees. For which, bills of books, entertainment and other necessary expenses will have to be submitted. In this way, Rs 16,70,400 – Rs 3,00,900 = Rs 13,69,500
Apart from this, if you have taken a loan to buy a house and have given that property on rent, then under the new tax regime, you can get exemption on interest amount up to Rs 2 lakh annually. In this way, your CTC becomes Rs 13,69,500 – Rs 2,00,000 = Rs 11,59,500. Which is less than the exemption limit of Rs 12 lakh.
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