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: How can Rs 18.75 lakh become tax-free under the new regime?

 

💬 Q: What are the latest income tax slabs under the new regime?

👉 A:
Under the New Tax Regime (FY 2025-26):

  • ₹0 – ₹4,00,000: NIL
  • ₹4,00,001 – ₹8,00,000: 5%
  • ₹8,00,001 – ₹12,00,000: 10%
  • ₹12,00,001 – ₹16,00,000: 15%
  • ₹16,00,001 – ₹20,00,000: 20%
  • ₹20,00,001 – ₹24,00,000: 25%
  • Above ₹24,00,000: 30%

💬 Q: Can a salaried person earning ₹12.75 lakh pay ZERO tax?

👉 A:
Yes! Here's how:
✅ Income: ₹12.75 lakh
✅ Standard Deduction: ₹75,000
✅ Net Taxable: ₹12 lakh
✅ Tax Payable: ₹60,000
✅ Section 87A Rebate: ₹60,000
💥 Final Tax: ZERO

💬 Q: What if I earn a bit more — say ₹12.85 lakh?

👉 A:
Thanks to the marginal relief, you’ll only pay tax on the extra ₹10,000—not the entire income.
So, total tax = Just ₹500 + 4% cess!

💬 Q: How can Rs 18.75 lakh become tax-free under the new regime?

👉 A:
By using these tax-saving tools smartly:

💡 Component

💸 Deduction/Exemption

Standard Deduction (Salaried)

₹75,000

Employer NPS (14% of Basic ₹6L)

₹84,000 (Sec 80CCD(2))

Employer EPF (12% of Basic ₹6L)

₹72,000 (Sec 10)

PPF & Sukanya Interest

₹20,000 (Exempt - Sec 10)

Post Office Int. (Sec 10(15)(i))

₹3,500

Gratuity, Leave Encashment

Up to ₹25L exempt (Sec 10)

Daily/Travel Allowances

Actual Basis

Life Insurance Maturity

Fully Exempt (Sec 10(10D))

VRS Compensation

Up to ₹5L exempt (Sec 10(10C))

📉 These help bring your taxable income close to ₹12L... and the rebate handles the rest!

💬 Q: What's the trick? Is it legal?

👉 A:
No trick. Just smart use of:

  • Employer Contributions
  • Exempt Interest Income
  • Allowances & Section 10 Exemptions
  • Section 87A Rebate

All are 100% legal & notified by the Income Tax Department.

🧮 Real Example:

Salaried Income: ₹18,75,000
Standard Deduction: ₹75,000
Employer NPS + EPF: ₹1,56,000
PPF + PO Interest: ₹23,500

Other Allowances/Exemptions: ₹1,20,500
Net Taxable: ₹11,99,000
Tax Liability: ₹60,000
Section 87A Rebate: ₹60,000
🎯 Final Tax Payable: ₹0

✅ Bottom Line:
"18.75 lakh salary bhi ho sakti hai tax-free — bas planning honi chahiye smart aur compliant!"

 


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