The central government has made income up to 12 lakhs tax-free in the budget 2025. Under the new tax regime, people earn up to Rs 12 lakh annually. They will not have to pay a single rupee tax. Apart from this, a tax deduction of Rs 75 thousand will also be available. Overall, zero tax will be levied on 12.75 lakhs. But do you know that there are some methods, by adopting which annual income up to Rs 19.20 lakh will become tax-free? Let us know how your zero tax will be made on income above 19 lakhs.

In the new tax regime, you just have to invest in the NPS scheme for tax exemption up to an income of 19.20 lakhs, which will reduce your taxable income and you will become tax-free. How will your tax count on NPS? How much to invest? Before knowing all this, let us understand what will be the salary structure of your annual income of 19.20 lakhs.

Salary structure
If you earn Rs 19.20 lakh annually, you will not get the full amount in hand. This will be your CTC. Out of that, the basic pay will be Rs 6 lakh. The personal allowance will be Rs 5 lakh 50 thousand. Minimum PF contribution will be Rs 21,600. The gratuity will be Rs 28,800. Variable will be Rs 96,000 and Flexi pay will be Rs 6,23,600 for tax-free components.

You will not have to pay a single penny like this.
In the new tax regime, the government gives a tax deduction of Rs 75 thousand. According to this, 19.20 lakh will become 18,45,000. If a person opts for the National Pension System on this, then he will get a discount of 14 percent on the basic salary. 14 percent of the basic salary of Rs 6 lakh will be Rs 84 thousand. That means after NPS, the remaining income will be Rs. 18,45,000-84,000 = Rs. 17,61,000.

Flexi Pay Tax-Free

Apart from this, if the salary is high, then the benefit of flexi pay tax-free components is available, in which, according to this salary, the conveyance will be Rs. 2,85,600. Books and Periodicals will be Rs. 1,08,000. Rs. 2,40,000 will be deducted for entertainment and Rs. 90,000 annually for uniforms. In total, this amount will be Rs. 6,23,600, which if we deduct from Rs. 17,61,000, the taxable income will be Rs. 11,37,400. Since the government has made income up to Rs. 12 lakh tax-free in the new tax regime, then according to this, a person with a CTC of Rs. 19.20 lakh will have to pay zero tax.

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