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Pay 0 Tax on Rs 19 Lakh Income: Saving tax can be quite a big challenge for everyone whose income exceeds the tax-free limit. In the new tax regime applicable for the financial year 2025-26, the tax-free limit is Rs 12,75,000. If your salary is slightly higher than that, you may save tax through Employees' Provident Fund (EPF) or National Pension System (NPS) employer contribution tax benefits.
But if your salary exceeds significantly, saving tax can be quite challenging.
If your annual salaried income is Rs 19 lakh, saving tax can be even more challenging.
In this article, you will tell you about deductions available in the new tax regime that may help you pay 0 tax on a Rs 19,00,000 salaried income.
Income tax and deductions on Rs 19 lakh income
Let's see the tables that show tax liability on a Rs 19,00,000 salaried income and tax deductions available that you may claim in the old and new tax regimes.
| Particulars | Tax Rate (%) | Income (Rs) | Tax amount (Rs) |
| Net Income | 19,00,000 | ||
| Less: Standard Deduction | 75,000 | ||
| Deduction U/s 80 CCD (2) | 1,26,000 | ||
| Post Office Scheme Interest 10(15(i) | 3,500 | ||
| Interest on PPF/ Sukanya Yojna(1.5 lakhs +1 Lakhs) | 17,500 | ||
| Net taxable income | 16,78,000 | ||
| Income exempt up to Rs 4 lakh | Nil | 4,00,000 | |
| Income tax slab of Rs 4 lakh and up to Rs 8 lakh | 5 | 4,00,000 | 20,000 |
| Income tax slab of Rs 8 lakh up to Rs 12 lakh | 10 | 4,00,000 | 40,000 |
| Income tax slab of Rs 12 lakh up to Rs 16 lakh | 15 | 4,78,000 | 71,700 |
| Total income tax liability | - | 1,31,700 | |
| Cess at 4% on total income tax payable | - | 5,268 | |
| Final income tax liability (inclusive of cess) | - | 1,36,968 |
In the table you can see that you will get a standard deduction of Rs 75,000.
Under Section 80 CCD (2), the taxpayer may get a further benefits of Rs 1,26,000 on the employer's contribution to the National Pension System (NPS) account.
Under Section 10(15(i), they may save up to Rs 3,500 income tax on the interest earned in a post office scheme.
If they invest Rs 1.5 lakh in their Public Provident Fund (EPF) and Rs 1 lakh in the Sukanya Samriddhi Account for their daughter, they may also get a Rs 17,500 tax benefits.
After availing these tax benefit, the tax liability can be reduced to Rs 1,36,968, including a 4 per education cent cess.
To reduce that tax liability to zero, there are a number of tax deductions available in the new tax regime.
- Contribution to the Agnipath Scheme u/s 80CCH(2) is 100 per cent exempted.
- Travelling Allowance (TA) on an actual basis, for travelling purpose, in case of transfer or office shifting.
- Daily allowance on an actual basis, but it will form part of CTC.
- Conveyance allowance on an actual basis, but it will form part of CTC.
Other deductions available in new tax regime for FY 2025-26 are:
- In case of family pension income, Rs 25,000/ or 1/3rd, whichever is lower, is exempt.
- Rent income from a let-out property will be exempt up to 30 per cent.
- Exemption for the second vacant house will be there, without considering deemed rent income.
- Gratuity Amount under Section 10 (10) up to Rs 25 lakhs is exempt
- Leave encashment allowance under Section 10(10AA) up to Rs 25 lakhs is exempt.
- Voluntary retirement amount is exempt under Section 10 (10C) up to Rs 5 lakhs.
- Income from life insurance policy under Section 10 (10D) is also exempt.
- No taxable perquites received from office like an office laptop, medical policy and interest-free loan are exempt forming part of salary.
- Transport allowance for special-abled person will be exempt.
(Disclaimer: This is not financial advice. Please do your due diligence or consul an expert for tax planning.)
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