No Tax on Taxable Income of ₹12.75 Lakh with Standard Deduction: Relief for Salaried Individuals
In a major relief for salaried individuals, the government has announced that taxable income up to ₹12.75 lakh will attract zero tax liability after applying standard deductions and exemptions. No Tax on ₹12.75 Lakh Taxable Income with Standard Deduction This move aims to provide financial ease to middle-class taxpayers.
How It Works?
Under the new tax regime, salaried employees can benefit from:
- Standard Deduction of ₹50,000
- Rebate under Section 87A for income up to ₹7 lakh
- Other applicable exemptions
With these deductions, an individual earning ₹12.75 lakh can legally reduce their taxable income below the zero-tax threshold, ensuring no tax liability.
Impact on Salaried Employees
This decision significantly benefits middle-income earners, allowing them to retain more of their earnings. Additionally, the simplified tax process reduces compliance burdens and encourages more people to opt for the new tax regime.
Government’s Objective
The announcement aligns with the government’s focus on boosting disposable income, promoting savings, and increasing consumer spending, which will drive economic growth.
Conclusion
Salaried individuals can now enjoy zero tax liability up to ₹12.75 lakh, making tax planning easier and more efficient. To maximize benefits, taxpayers should review their deductions and exemptions carefully.
