Tax Burden Eased: See How?

Tired of seeing your hard-earned money vanish in taxes? Start investing in tax-efficient instruments and achieve tax planning through awareness, consistency, and early action.  

Let’s learn the top smart tips to achieve legal tax. 

Salaried people and pensioners can deduct Rs 75,000 from their standard income. This automatic deduction reduces your taxable salary/pension income. 

The Union Budget has increased the tax limit under 87A of the Income Tax Act. The new regime offers a 100% tax of Rs 12 Lakhs or less, owing zero tax after the refund.  

Employers' NPS contribution of up to 14% of their basic salary is tax-free under 80 CCD (2) in the new regime.   Providing better benefits to salaried individuals. 

Taxpayers can adjust their salaries to include specific allowances and reimbursements exempt from taxes. However, both internet and fuel reimbursements are non-taxable in any regime. 

 Family pensioners claim a higher standard deduction of ₹25,000 in the new regime. It provides tax relief to family pensioners, often benefiting older people. 

While transport and conveyance allowances remain tax-free, be aware of other specific deductions if opting for the new regime. 

The new regime allows interest on the loan for rented property to be deductible in full against the rental income, ensuring a tax benefit via the rental route. 

Significantly lower surcharge rates in the new regime can lead to substantial tax savings. It primarily benefits top-bracket earners.  

In both regimes, businesses get an extra 30% deduction on employee costs for new hires. Full-time employees enjoy lower tax rates without sacrificing deductions for business growth. 

Under section 80C, you cannot claim to invest in tax-free instruments. Investing in innovative instruments like PPF, where maturity amounts are entirely tax-free, regardless of the regime, benefits salaried individuals.