Great news for taxpayers! The Union Budget has already made income up to ₹12 lakh tax-free, but you can now legally increase this limit to ₹18 lakh under the new income tax regime. By restructuring your salary wisely, you can bring down your tax liability to zero. Here’s how!
📌 Smart Tax-Saving Strategy
You can restructure your salary to include tax-free components like NPS contributions, allowances, and deductions.
📝 Tax-Free Salary Breakdown (₹18 Lakh Income)
- Basic Salary + DA: ₹12.25 Lakh
- NPS Contribution (Employer’s Share): ₹1.71 Lakh (Tax-free under Section 80CCD(2))
- Motor Car Facility (Tax-Free Perk): ₹4 Lakh
- Gift Allowance from Employer: ₹5,000 (Exempt under Rule 3(7)(iv) of Section 17(2)(vii))
- Standard Deduction: ₹75,000 (Available for all salaried employees)
- Total Gross Salary: ₹18.01 Lakh
- Tax Payable: ₹0 ✅
📢 Why Should You Care?
💡 Maximize Your Salary – Keep more money in your pocket legally!
💡 Stay Compliant – Use deductions and allowances provided by law.
💡 Plan Smartly – Restructure your salary for tax efficiency.
🚨 New Income Tax Bill Coming Soon!
Finance Minister Nirmala Sitharaman has announced that a new Income Tax Bill will be introduced next week in Parliament. This bill aims to simplify tax rules and boost savings for the common man.
