Pay 0 Tax on Rs 19 Lakh Revenue: Saving tax will be fairly an enormous problem for everybody whose revenue exceeds the tax-free restrict. Within the new tax regime relevant for the monetary 12 months 2025-26, the tax-free restrict is Rs 12,75,000. In case your wage is barely increased than that, you might save tax by means of Staff’ Provident Fund (EPF) or Nationwide Pension System (NPS) employer contribution tax advantages.
But when your wage exceeds considerably, saving tax will be fairly difficult.
In case your annual salaried revenue is Rs 19 lakh, saving tax will be an uphill job.
On this article, we are going to let you know about deductions accessible within the new tax regime that will enable you pay 0 revenue tax on a Rs 19,00,000 salaried revenue.
Revenue tax and deductions on Rs 19 lakh revenue
Let’s examine the desk that present tax legal responsibility on a Rs 19,00,000 salaried revenue and tax deductions accessible that you could be declare within the new tax regime.
Within the desk you’ll be able to see that you’ll get a normal deduction of Rs 75,000.
Below Part 80 CCD (2), the taxpayer might get an extra advantage of Rs 1,26,000 on the employer’s contribution to the Nationwide Pension System (NPS) account.
Below Part 10(15(i), they might save as much as Rs 3,500 in revenue tax on the curiosity earned in a publish workplace scheme.
In the event that they make investments Rs 1.5 lakh of their Public Provident Fund (EPF) and Rs 1 lakh within the Sukanya Samriddhi Account for his or her daughter, they might additionally get a Rs 17,500 tax profit.
After availing these tax advantages, the tax legal responsibility will be lowered to Rs 136,968, together with a 4 per schooling cent cess.
To scale back that tax legal responsibility to zero, there are a selection of tax deductions accessible within the new tax regime.
- Contribution to the Agnipath Scheme u/s 80CCH(2) is 100 per cent exempted.
- Travelling Allowance (TA) on an precise foundation, for travelling objective, in case of switch or workplace shifting.
- Each day allowance on an precise foundation, however it’s going to kind a part of CTC.
- Conveyance allowance on an precise foundation, however it’s going to kind a part of CTC.
Different deductions accessible in new tax regime for FY 2025-26 are:
- In case of household pension revenue, Rs 25,000/ or 1/third, whichever is decrease, is exempt.
- Lease revenue from a let-out property might be exempt as much as 30 per cent.
- Exemption for the second vacant home might be there, with out contemplating deemed hire revenue.
- Gratuity Quantity underneath Part 10 (10) as much as Rs 25 lakhs is exempt
- Go away encashment allowance underneath Part 10(10AA) as much as Rs 25 lakhs is exempt.
- Voluntary retirement quantity is exempt underneath Part 10 (10C) as much as Rs 5 lakhs.
- Revenue from life insurance coverage coverage underneath Part 10 (10D) can also be exempt.
- No taxable perquites obtained from workplace like an workplace laptop computer, medical coverage and interest-free mortgage are exempt forming a part of wage.
- Transport allowance for special-abled particular person might be exempt.
(Disclaimer: This isn’t monetary recommendation. Please do your due diligence or consul an skilled for tax planning.)
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