New Regime Tax Calculations: The monetary 12 months 2024-25 is nearly to finish. Taxpayers can file their income tax return (ITR) within the outdated and new tax regimes.
Nonetheless, the image will change from the monetary 12 months 2025-26, which can begin on April 1, 2025.
Taxpayers will be capable of file their ITR as per the proposed new tax regime, which was launched in Funds 2025 final month.
Foremost modifications in new tax regime
Essentially the most hanging change within the new tax regime is that income 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 income of Rs 12,75,000.
(*15*)
However what if their income is Rs 1,500,000? What’s going to be the tax legal responsibility, and can they make it tax-free? How?
Tax legal responsibility on Rs 1,500,000 income
Earlier than understanding that, let’s undergo tax slabs within the proposed new tax regime. Right here, you can see that income 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 income
After a normal deduction of Rs 75,000 beneath Part 87A of the Income Tax Act, 1961, tax legal responsibility on the taxable income of Rs 14,25,000 will be Rs 97,500, the place Rs 3,750 is the well being and training cess.
Now the query is learn how to make it tax-free.
How to make Rs 15,00,000 income tax-free
Within the proposed tax regime, there are specific relaxations that can make your income 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 fundamental 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’s going to be Rs 1,05,000.
Conveyance allowance
For conveyance that staff use for official goal, they can 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 will be Rs 24,000>
Cell phone payments
Should you use your cell phone or web connection for workplace use, you can get reimbursement for it additionally.
It can be Rs 1,500 or extra. At Rs 1,500 a month, you can get Rs 18,000 reimbursement a 12 months for the cellular invoice.
Meals/leisure invoice
You can additionally get meals/leisure reimbursement as a part of your wage construction.
At a Rs 15,00,000 wage package deal, the reimbursement can be Rs 3,000 a month or Rs 36,000 a 12 months.
Tax legal responsibility after deduction
After a normal deduction, the taxable income was Rs 14,25,000.
If we embrace the sum of NPS employer contribution and reimbursements, it’s going to be Rs 2,43,000.
After these deductions, the taxable income will be Rs 11,82,000, the place after a rebate of Rs 38,200 beneath Part 87A, the complete income will be tax-free.
Source link
#Income #Tax #Calculations #lakh #income #taxfree #calculations
