Zero tax up to ₹14 lakh for salaried professionals

Earning upto ₹12.75 Lakh

Under the new FY 2025-26 tax regime, you can earn up to ₹12.75 lakh without paying any taxes. But what if you're earning ₹13-15 lakhs? Strategic tax planning can still save you thousands, without complex investments. Here's your roadmap to smart tax savings.

The New Tax Regime(FY 2025–26)

The new tax regime offers significant benefits, including:

• Enhanced standard deduction of ₹75,000 (up from ₹50,000)

• Zero tax up to ₹12.75 lakh (thanks to rebates and standard deduction)

• Marginal relief for incomes slightly above ₹12 lakh

Here is the tax slab -

What If You Earn ₹13 Lakh?

Here is how you can minimize your tax liability:

Without Tax Planning:

• Gross Salary: ₹13,00,000

• Standard Deduction: ₹75,000

• Taxable Income: ₹12,25,000

• Tax without Marginal Relief:

  • 0% on first ₹4 lakh = ₹0

  • 5% on next ₹4 lakh = ₹20,000

  • 10% on next ₹4 lakh = ₹40,000

  • 15% on ₹25,000 = ₹3,750

  • Total = ₹63,750

With Marginal Relief:

• Excess over ₹12 lakh = ₹25,000

• Due to marginal relief, the tax is capped at ₹25,000

• With 4% cess: ₹26,000

Tax Saved: ₹37,750

Use TrueX Tax Planner to calculate your taxes

You can further reduce the taxes to 0 by investing in Employer NPS as explained below:

What If You Earn ₹14 Lakh?

For higher earners at ₹14 lakh, the situation looks even better if structured smartly.

Calculations:

• Basic + DA = 70% of Gross = ₹9,80,000

• Employer NPS (14% of Basic+DA): ₹1,37,200 (fully tax-free under Section 80CCD(2))

• Standard Deduction: ₹75,000

Taxable Income = ₹14,00,000 − ₹1,37,200 − ₹75,000 = ₹11,87,800

Tax Payable:

• Since taxable income < ₹12,00,000, zero tax due to rebate provided under the new tax regime. Final Tax Payable = ₹0

Tax Saved = ₹81,900

Use TrueX Tax Planner to calculate your taxes

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FAQ

Marginal Relief for Salaried Employees (New Tax Regime, FY 2025-26)

Marginal relief is a tax benefit designed to ensure that employees whose income slightly exceeds the ₹12 lakh threshold (where the enhanced rebate applies) do not pay disproportionately higher taxes.

Who Benefits?

• Salaried employees with taxable income just above ₹12L (e.g., due to bonuses or raises).

How to Claim It?

• Automatically applied when filing ITR (no separate form).

Top 3 Tax-Saving Strategies

A. Leverage Employer’s NPS Contribution

• How?

  • Employer contributes 10%/14% of (Basic + DA) to your NPS (tax-free under Section 80CCD(2)).

Example: If your Basic + DA = ₹14,00,000:

• Private sector employee: Max deduction = ₹1,96,000 under 80CCD(2) (14% of ₹14,00,000)

B. Claim Marginal Relief

• What qualifies?

  • Taxable income between ₹12L–₹12.75L.

• Benefit: Tax capped at an amount exceeding ₹12L.

  • Example: ₹ 12.25 L income post standard deduction of ₹75000. → pay only ₹25,000 tax (vs. ₹63,750 without relief).

C. Optimize Allowances

• Utilise Conveyance Allowance for reducing taxable income

  
  

  Use TrueX Tax Planner to calculate your taxes