New Regime Tax Calculations: The monetary 12 months 2024-25 is nearly to finish. Taxpayers can file their revenue tax return (ITR) within the outdated and new tax regimes.
Nonetheless, the image will change from the monetary 12 months 2025-26, which is able to begin on April 1, 2025.
Taxpayers will be capable to file their ITR as per the proposed new tax regime, which was launched in Price range 2025 final month.
Principal adjustments in new tax regime
Probably the most placing change within the new tax regime is that revenue as much as Rs 12,00,000 is tax-free for non-salaried people.
So far as salaried-class people are involved, they do not need to pay any tax until the revenue of Rs 12,75,000.
| Proposed Tax Regime | |
| Revenue Tax Slabs | Tax Fee |
| Upto Rs. 4,00,000 | NIL |
| Rs. 4,00,001 – Rs. 8,00,000 | 5% |
| Rs. 8,00,001 – Rs. 12,00,000 | 10% |
| Rs. 12,00,001 – Rs. 16,00,000 | 15% |
| Rs. 16,00,001 – Rs. 20,00,000 | 20% |
| Rs. 20,00,001 – Rs. 24,00,000 | 25% |
| Above Rs. 24,00,000 | 30% |
However what if their revenue is Rs 1,500,000? What would be the tax legal responsibility, and may they make it tax-free? How?
Tax legal responsibility on Rs 1,500,000 revenue
Earlier than figuring out that, let’s undergo tax slabs within the proposed new tax regime. Right here, you possibly can see that revenue from Rs 12,00,000 to Rs 16,00,000 falls within the bracket of 15 per cent.
Tax legal responsibility on Rs 15,00,000 revenue
After a regular deduction of Rs 75,000 beneath Part 87A of the Revenue Tax Act, 1961, tax legal responsibility on the taxable revenue of Rs 14,25,000 shall be Rs 97,500, the place Rs 3,750 is the well being and training cess.
Now the query is how you can make it tax-free.
Tips on how to make Rs 15,00,000 revenue tax-free
Within the proposed tax regime, there are specific relaxations that may make your revenue of Rs 15,00,000 tax-free.
- Nationwide Pension System contribution from employer’s facet
- Conveyance invoice reimbursement
- Uniform invoice reimbursement
- Cell phone invoice reimbursement
- Meals/leisure invoice reimbursement
Let’s undergo them one after the other.
NPS tax profit to new regime taxpayers
Taxpayers can get a tax profit on the employer’s contribution to their NPS account as much as 14 per cent of their primary wage beneath Part 80CCD(2).
Let’s assume that the fundamental wage of an individual incomes Rs 15,00,000 is Rs 7,50,000. The 14 per cent employer contribution on it is going to be Rs 1,05,000.
Conveyance allowance
For conveyance that staff use for official function, they’ll declare reimbursement for the payments they pay.
One can get this reimbursement included of their wage construction to get tax advantages.
Let’s assume that at Rs 5,000 a month, you get the advantage of Rs 60,000 a 12 months.
Uniform allowance
You could get it included in your wage construction.
At Rs 15,00,000, chances are you’ll simply get Rs 2,000 a month as a uniform allowance, which in a 12 months shall be Rs 24,000>
Cell phone payments
For those who use your cell phone or web connection for workplace use, you will get reimbursement for it additionally.
It may be Rs 1,500 or extra. At Rs 1,500 a month, you will get Rs 18,000 reimbursement a 12 months for the cell invoice.
Meals/leisure invoice
It’s also possible to get meals/leisure reimbursement as a part of your wage construction.
At a Rs 15,00,000 wage bundle, the reimbursement may be Rs 3,000 a month or Rs 36,000 a 12 months.
Tax legal responsibility after deduction
After a regular deduction, the taxable revenue was Rs 14,25,000.
If we embrace the sum of NPS employer contribution and reimbursements, it is going to be Rs 2,43,000.
After these deductions, the taxable revenue shall be Rs 11,82,000, the place after a rebate of Rs 38,200 beneath Part 87A, your complete revenue shall be tax-free.
