Budget 2025 Insight and Income Tax: While on one hand work is going on to bring a new income tax law in the country, on the other hand, in Budget 2025, the government has made income of Rs 12 lakh tax-free in the new tax regime. Still, many different calculations have come to the fore. In such a situation, salaried people will be happy to know that even if their salary package is more than Rs 14 lakh, their tax liability will be zero.

Companies offer CTC to employees on the job. In this, apart from your salary, the company includes the expenses on EPFO ​​contribution, insurance, gratuity, etc. in your CTC (Cost to Company). In this way, your total salary package comes out.

This is how income tax will be calculated.

If you want to know how to save your income tax maximum, then you should know that the contribution made by the company to EPFO ​​in your CTC is 12 percent of your basic salary. Your basic salary is equal to about 50 percent of your total salary.

In such a situation, let us assume that your CTC is a little more than Rs 14 lakh, i.e. around Rs 14.65 lakh. In this, the company's contribution of 12 percent to your EPFO ​​will be around Rs 87,900. You do not have to pay any tax on this. Along with this, if your company has also offered an NPS contribution, then it will be equal to 14 percent of your basic salary. In this way, this income of Rs 1.02 lakh will also become tax-free every year.

Along with this, the salaried class will also get the benefit of a standard deduction of Rs 75,000. After all these claims and deductions, your taxable income will be Rs 11.99 lakh. On this income, you will get a tax rebate under section 87A of the Income Tax Act and your tax liability will be zero.

Income tax law is going to change.

In her budget speech, Finance Minister Nirmala Sitharaman also announced that a new income tax law will be introduced in the country soon. This is in line with the government's announcement in the last budget. A committee was formed to simplify and renew the income tax law in the country, based on whose recommendations the government is going to bring a new income tax bill in this budget session. The government aims to simplify the income tax law.

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