No Income Tax Up to ₹ 12.75 Lakh for Salaried Tax Payers!
No Income Tax Up to ₹ 12.75 Lakh for Salaried Tax Payers: Income Tax Exemption for Salaried Individuals Earning Up to ₹ 12.75 Lakh: Is This Accurate? Indeed, it may seem astonishing, but it is accurate! This is excellent news for Central Government employees, as they are not required to pay income tax on earnings up to ₹ 12.75 lakh (inclusive of a standard deduction of ₹ 75,000). This development provides significant relief for salaried individuals, especially those belonging to the middle class in India.
New Income Tax Slab Rates for FY 2025-26
Income | Tax Rate |
Up to 4 Lakh | Nil |
4 to 8 Lakh | 5 Percent |
8 to 12 Lakh | 10 Percent |
12 to 16 Lakh | 15 Percent |
16 to 20 Lakh | 20 Percent |
20 to 24 Lakh | 25 Percent |
24 Lakh Above | 30 Percent |
Income Tax Calculation for ₹ 13 lakh in New Regime 2025-26
There exists a significant disparity between an income of ₹ 13 Lakh and ₹ 12.75 Lakh. Income up to ₹ 12.75 Lakh is exempt from taxation; however, upon exceeding this threshold, an income tax of ₹ 63,750 becomes applicable.
Slab | Tax | Split Income | Tax Amount |
Up to 4 Lakh | No Tax | ₹ 4 Lakh | Nil |
4 to 8 Lakh | 5% | ₹ 4 Lakh | 20,000 |
8 to 12 Lakh | 10% | ₹ 4 Lakh | 40,000 |
Standard Deduction | ₹ 75,000 | ||
12 to 16 Lakh | 15% | ₹ 25,000 | 3,750 |
Total Income | ₹ 13 Lakh | 63,750 |
Tax Impact: Monthly Income Not Exceed ₹ 1,06,250!
The ultimate objective is to reach a monthly income of 1,06,250 rupees. Exceeding this threshold by even a single rupee will result in an income tax liability exceeding 63 thousand rupees. Nearly all pensioners from Central and State governments received additional relief as a result of this announcement.
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