Under the new tax system, income up to Rs 12 lakh will not be subject to taxation, according to the Union Budget 2025. The total income up to Rs 12.75 lakh will be entirely tax-free thanks to the additional benefit of a Rs 75,000 tax deduction. Are you aware, however, that there are ways to make yearly income up to Rs 19.20 lakh tax-free? Tell us how your taxes will be nil if your income exceeds 19 lakhs.
Under the new tax regime, you must invest in the National Pension System (NPS) to receive tax exemption on income up to Rs 19.20 lakh. You can become tax-free and lower your taxable income by investing in NPS. You will become tax-free as a result of your taxable income being decreased. How will the NPS calculate your taxes? How much should I invest? Let's first discuss the wage structure for your 19.20 lakhs yearly income before learning more about all of this.
Salary Structure-
You won't receive the full amount in hand if your yearly income is 19.20 lakh rupees. Your CTC will be this. Six lakhs will be the base salary out of that. Five lakh fifty thousand will be the personal allowance. There will be a minimum PF contribution of 21,600. There will be a 28,800 rupee gratuity. For tax-free components, the variable will be 96,000 and the flex pay will be 6,23,600.
Customers' money will never be deposited in either of the two private and one government banks on the Reserve Bank's list of the safest institutions.
You won't have to pay a single penny like this-
In the new tax system, the government gives a standard deduction of ₹ 75,000, which will reduce your income from ₹ 19.20 lakh to ₹ 18,45,000. If you choose the National Pension System (NPS), you will get an additional exemption of 14% of the basic salary (₹ 6 lakh) i.e. ₹ 84,000. After this, your total taxable income will be ₹ 17,61,000.
Flexi Pay Tax-Free-
In addition, you will receive the benefit of Flexi Pay Tax-Free Components if your salary is high. Based on this salary, 2,85,600 conveyances will be provided. The cost of books and magazines is Rs 1,08,000. Every year, Rs 90,000 will be subtracted for uniforms and Rs 2,40,000 for amusement.
After deducting Rs 17,61,000 from the sum of Rs 6,23,600, the taxable income comes to Rs 11,37,400. An individual with a CTC of Rs 19.20 lakh will pay no taxes under the new tax regime since the government has rendered income up to Rs 12 lakh tax-free.
Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
Under the new tax regime, you must invest in the National Pension System (NPS) to receive tax exemption on income up to Rs 19.20 lakh. You can become tax-free and lower your taxable income by investing in NPS. You will become tax-free as a result of your taxable income being decreased. How will the NPS calculate your taxes? How much should I invest? Let's first discuss the wage structure for your 19.20 lakhs yearly income before learning more about all of this.
Salary Structure-
You won't receive the full amount in hand if your yearly income is 19.20 lakh rupees. Your CTC will be this. Six lakhs will be the base salary out of that. Five lakh fifty thousand will be the personal allowance. There will be a minimum PF contribution of 21,600. There will be a 28,800 rupee gratuity. For tax-free components, the variable will be 96,000 and the flex pay will be 6,23,600.
Customers' money will never be deposited in either of the two private and one government banks on the Reserve Bank's list of the safest institutions.
You won't have to pay a single penny like this-
In the new tax system, the government gives a standard deduction of ₹ 75,000, which will reduce your income from ₹ 19.20 lakh to ₹ 18,45,000. If you choose the National Pension System (NPS), you will get an additional exemption of 14% of the basic salary (₹ 6 lakh) i.e. ₹ 84,000. After this, your total taxable income will be ₹ 17,61,000.
Flexi Pay Tax-Free-
In addition, you will receive the benefit of Flexi Pay Tax-Free Components if your salary is high. Based on this salary, 2,85,600 conveyances will be provided. The cost of books and magazines is Rs 1,08,000. Every year, Rs 90,000 will be subtracted for uniforms and Rs 2,40,000 for amusement.
After deducting Rs 17,61,000 from the sum of Rs 6,23,600, the taxable income comes to Rs 11,37,400. An individual with a CTC of Rs 19.20 lakh will pay no taxes under the new tax regime since the government has rendered income up to Rs 12 lakh tax-free.
Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
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