PWC News
Sunday, June 1, 2025
No Result
View All Result
  • Home
  • Business
  • Economy
  • ESG Business
  • Markets
  • Investing
  • Energy
  • Cryptocurrency
  • Market Analysis
  • Home
  • Business
  • Economy
  • ESG Business
  • Markets
  • Investing
  • Energy
  • Cryptocurrency
  • Market Analysis
No Result
View All Result
PWC News
No Result
View All Result

Income Tax Calculations: How your Rs 15 lakh income can be tax-free; see calculations

Home Business
Share on FacebookShare on Twitter


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 Taxpayers can file their revenue tax return (ITR) within the outdated and new tax regimes.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 Finances 2025 final month.

Important adjustments in new tax regime   

Probably the most hanging 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 Charge
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?

New tax regime

Tax legal responsibility on Rs 1,500,000 revenue

Earlier than understanding that, let’s undergo tax slabs within the proposed new tax regime. Right here, you’ll be able to see that revenue from Rs 12,00,000 to Rs 16,00,000 falls within the bracket of 15 per cent.

How to save tax

Tax legal responsibility on Rs 15,00,000 revenue

After a typical deduction of Rs 75,000 below Part 87A of the Revenue Tax Act, 1961, tax legal responsibility on the taxable revenue of Rs 14,25,000 will likely be Rs 97,500, the place Rs 3,750 is the well being and training cess.

Now the query is find out how to make it tax-free.

Tax liability

Tips on how to make Rs 15,00,000 revenue tax-free

Within the proposed tax regime, there are particular relaxations that may make your revenue of Rs 15,00,000 tax-free.

  • Nationwide Pension System contribution from employer’s aspect
  • Conveyance invoice reimbursement
  • Uniform invoice reimbursement 
  • Cell phone invoice reimbursement
  • Meals/leisure invoice reimbursement 

Let’s undergo them one after the other.

Rs 15 lakh tax-free income

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 below Part 80CCD(2).

Let’s assume that the essential wage of an individual incomes Rs 15,00,000 is Rs 7,50,000. The 14 per cent employer contribution on will probably be Rs 1,05,000.

NPS tax benefits in new tax regime

Conveyance allowance

For conveyance that staff use for official objective, 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.

Tax benefits on conveyance bills

Uniform allowance 

You might 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 likely be Rs 24,000>

Tax benefits on uniform bills

Cell phone payments

In case you use your cell phone or web connection for workplace use, you may get reimbursement for it additionally.

It may be Rs 1,500 or extra. At Rs 1,500 a month, you may get Rs 18,000 reimbursement a 12 months for the cell invoice.

Meals/leisure invoice 

You too can get meals/leisure reimbursement as a part of your wage construction.

At a Rs 15,00,000 wage package deal, the reimbursement might be Rs 3,000 a month or Rs 36,000 a 12 months.

Tax legal responsibility after deduction 

After a typical deduction, the taxable revenue was Rs 14,25,000.

If we embrace the sum of NPS employer contribution and reimbursements, will probably be Rs 2,43,000.

After these deductions, the taxable revenue will likely be Rs 11,82,000, the place after a rebate of Rs 38,200 below Part 87A, the complete revenue will likely be tax-free.





Source link

Tags: CalculationsIncomelakhtaxTaxFree
Previous Post

Broadcom (AVGO) appears to be on track to leverage huge AI opportunity | AlphaStreet

Next Post

Powell says Fed is awaiting ‘greater clarity’ on Trump policies before making next move on rates

Related Posts

Why India’s hotels enjoy highest EV per room globally
Business

Why India’s hotels enjoy highest EV per room globally

May 31, 2025
Adani Group Outlines Transport Network In Rebuild Of Mumbai Slum
Business

Adani Group Outlines Transport Network In Rebuild Of Mumbai Slum

June 1, 2025
Ramit Sethi Says There Are 7 Levels of Wealth — Where Do You Fall?
Business

Ramit Sethi Says There Are 7 Levels of Wealth — Where Do You Fall?

May 31, 2025
Who is ”Miss Atomic Bomb”? Historian searched for 25 years for answer
Business

Who is ”Miss Atomic Bomb”? Historian searched for 25 years for answer

May 31, 2025
Trump doubles steel tariffs to 50%
Business

Trump doubles steel tariffs to 50%

May 31, 2025
Report: Tariff Impact on B2B Resale Market
Business

Report: Tariff Impact on B2B Resale Market

May 31, 2025
Next Post
Powell says Fed is awaiting ‘greater clarity’ on Trump policies before making next move on rates

Powell says Fed is awaiting 'greater clarity' on Trump policies before making next move on rates

Canada unveils aid to help businesses and workers hit by tariff war

Canada unveils aid to help businesses and workers hit by tariff war

Opinion: Canada needs urgent economic reform. Here’s what to do

Opinion: Canada needs urgent economic reform. Here's what to do

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Nvidia Delivers Blowout Quarter While Writing Off China | Investing.com
Market Analysis

Nvidia Delivers Blowout Quarter While Writing Off China | Investing.com

by PWC
May 29, 2025
0

Analysts are largely bullish on the AI chipmaker’s prospects. It was a double dose of fine information for NVIDIA (NASDAQ:)...

Gun violence: Baylor football player Alex Foster, 18, fatally shot in Greenville, Mississippi

Gun violence: Baylor football player Alex Foster, 18, fatally shot in Greenville, Mississippi

May 29, 2025
Canary Capital files S-1 for staked Cronos ETF as SEC softens stance on staking

Canary Capital files S-1 for staked Cronos ETF as SEC softens stance on staking

May 30, 2025
Ethereum Bulls Defend Support – Key Indicator Hints At Short-Term Rally

Ethereum Bulls Defend Support – Key Indicator Hints At Short-Term Rally

May 31, 2025
Elon Musk Confirms X Money Payment Service Will Launch in Limited Beta – News Bytes Bitcoin News

Elon Musk Confirms X Money Payment Service Will Launch in Limited Beta – News Bytes Bitcoin News

May 26, 2025
Costco (COST) Q3 2025 earnings beat estimates; sales up 8% | AlphaStreet

Costco (COST) Q3 2025 earnings beat estimates; sales up 8% | AlphaStreet

May 29, 2025
PWC News

Copyright © 2024 PWC.

Your Trusted Source for ESG, Corporate, and Financial Insights

  • About Us
  • Advertise with Us
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact Us

Follow Us

No Result
View All Result
  • Home
  • Business
  • Economy
  • ESG Business
  • Markets
  • Investing
  • Energy
  • Cryptocurrency
  • Market Analysis

Copyright © 2024 PWC.