News India Live, Digital Desk: If your annual salary is 19 lakh rupees, then this information can be very important for you. In the new tax regime of the Government of India, you will not pay a tax of one rupee on the income of up to Rs 19 lakh with smart investment planning. Let’s know how it can be made possible.
Benefits of New Tax Regime
Since the financial year 2025-26, the Government of India has made New Tax Regime a default tax system. Under this, standard deduction of Rs 75,000 is available for salary employees.
Tax free structure on 19 lakh salary
Struct your salary in the way below:
- Basic Salary: Rs 9,97,000
- PF (Provident Fund): Rs 21,600
- Gratuity: Rs 45,600 (4.8%of basic salary)
- NPS (NPS Employee Contribution): Rs 1,33,000
- Flexi Pay (Tax Free Component): Rs 3,00,900
- Personal Allowance: Rs 3,06,900
- Total CTC: Rs 19,00,000
Tax calculation will be as follows:
- CTC: Rs 19,00,000
- Standard deduction (Rs 75,000): Rs 18,25,000
- EPS and NPS deduction (21,600 + 1,33,000): 16,70,400 rupees
- Flexi Pay (Rs 3,00,900): Rs 13,69,500
- Rebate on home loan interest (Rs 2,00,000, if property is on rent): Rs 11,69,500
After this process, your taxable income decreases to Rs 11,69,500, which is below the tax-free limit of Rs 12 lakh.
Use of flexi pay
Some companies offer an option of Flexi Pay, in which you can keep tax free up to three lakh rupees. For this, it is necessary to submit books, entertainment, and other bills.
With this smart planning, you can tax your income completely tax-free.
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