New Tax Regime: People earning 1 lakh salary will get a direct benefit of Rs 71500, you can also check

Neeraj was overjoyed. As soon as he got his salary yesterday, he was overjoyed. Neeraj says that his salary has really increased without appraisal. Neeraj is now going to get a profit of about Rs 71500 within a year, which has been possible due to a decision of the government. Neeraj could not believe till yesterday that the salary of April would actually increase. But now when Neeraj checked his bank account, he found out that the salary in April was about Rs 5,958 more than in March.

New tax regime: Actually, Neeraj’s monthly salary is Rs 1 lakh, which means his annual income is Rs 12 lakh. Last year, on this salary, Neeraj had to pay about Rs 71500 as income tax annually under the New Tax Regime, which means Neeraj was paying Rs 5958 as income tax every month. Which has now been saved, and has started increasing in the salary.

Benefits of the New Tax Regime 

All those whose annual salary is more than Rs 7.75 lakh are going to benefit from the changes in the new tax regime, whether your salary is Rs 10 lakh or Rs 15 lakh, 20 lakh, or Rs 25 lakh annually.

Under the new tax regime, people earning a salary of Rs 15 lakh will now have to pay an annual tax of Rs 1,05,000. Whereas in the financial year 2024-25, income tax of about Rs 1,45,600 was levied on an income of Rs 15 lakh in the new tax regime, that is, there will be a direct saving of Rs 40600. Now, income tax of about Rs 2,05,000 is due on an income of 20 lakh, whereas last year, tax of Rs 2,96,400 had to be paid on a salary of 20 years, that is, those earning 20 lakh annually will save about Rs 91400. On the other hand, those whose annual income is Rs 25 lakh will now have to pay income tax of Rs 3,30,000, whereas in the last financial year, income tax of about Rs 4,52,400 had to be paid, those with an annual income of 25 lakhs will have to pay about Rs 1,22,400 less tax every year.

Know how much will you benefit?

Let us tell you, the central government had given a big relief to the taxpayers in the budget this year, now there will be no income tax on income up to Rs 12 lakh. Whereas till the financial year 2024-25, under the new tax regime, there was no income tax on income up to Rs 7 lakh. Which has been increased to Rs 12 lakh from the financial year 2025-26. Apart from this, the salaried class will also get the benefit of standard deduction of Rs 75 thousand. That is, those whose salaried income is Rs 12.75 lakh annually will not have to pay any income tax.

Let us tell you, in the budget 2025, the central government has increased the amount of tax rebate under section 87A to Rs 60,000. Under the New Tax Regime (2025), on an income of 12 lakhs, the tax is Rs 52,500 according to the tax slab. But under 87A, if tax rebate of Rs 52,500 is also available, then no tax is due. Not only this, the new tax regime has been implemented from April 1, 2025 and now people whose salary is up to Rs 12.75 lakh do not have to think about income tax.

Whereas till the last financial year, those whose salary was more than Rs 7.75 lakh, and if they had chosen the new tax regime, then they had to pay income tax. But now the full salary will be available, the part of income tax which was being deducted till March 2025 will now stop.

Government’s focus on New Tax Regime

Actually, for the last few years, Modi government has been focusing on New Tax Regime, due to which now more than 90% people have adopted the New Tax Regime. In this year’s budget, the central government has increased the amount of tax rebate under section-87A to Rs 60,000, due to which now no income tax will have to be paid on annual income up to Rs 12 lakh.

Let us tell you, in most institutions, salary comes on the last day of the month or on the first date. In such a situation, the April salary would have come yesterday in some institutions, and in others it will come today and they will get an increased salary compared to March. Because due to the New Tax Regime, the salary which was earlier being deducted as income tax, will not be deducted now. Those with an annual income of up to Rs 12.75 lakh are going to get this exemption.

It is worth noting that the financial year 2025-26 has started from 1 April 2025, and the ‘New Tax Regime’ will be the default option. However, the old tax regime will still exist. According to CBDT, with the change in the new tax regime, now 90 to 97 percent of taxpayers can join this new tax system.

The post New Tax Regime: People earning 1 lakh salary will get a direct benefit of Rs 71500, you can also check first appeared on informalnewz.

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