Finance Minister Nirmala Sitharaman announced tax-free of income up to Rs 12 lakh annually in Union Budget 2025. This has brought a lot of relief to the middle class. Now people with income up to 12 lakhs annually will save more money in their hands. People will be able to use this money for expenses, savings and investment. The Finance Minister has also changed the tax slab in the new regimen. With this, people with more than Rs 12 lakh income will also have to pay less tax than before.
Have to invest in NPS
Tax experts say that if a person works, then his tax can be zero on income up to 13.7 lakhs annually. National Pension System for this (NPS) You have to invest in. New Rejeem of Income Tax (New regime of income tax) In the Basic Salary (Plus DA) NPS contribution of up to 14 per cent of NPS, deduction is available. This deduction is available under Income Tax X Tech Section 80CCD (2). However, this deduction is found only when the employer allows the employee to invest in NPS.
Such tax will be zero
Suppose a person’s annual income is Rs 13.7 lakh. If his basic salary is considered 50 percent, then it will be Rs 6.85 lakh. Its 14 percent will be Rs 95,900. Employee can claim deduction of 95,900 rupees annually in NPS. If a standard deduction of Rs 75,000 is added to this amount, then this total deduction will be Rs 1,70,900. In this way he will not have to pay any tax.
Also read: If your income is slightly more than 12 lakhs Marginal Relief You will get, know what is this relief and what is the benefit of this
NPS started in 2004
The NPS was started by the government in 2004. It was opened to the common people in 2009. This is the best scheme for retirement savings. On completion of 60 years of a person’s age, 60 percent of the funds deposited in NPS get lump sum. It is not taxed. The remaining 40 percent of the money has to be done in annuity. This gives a person pension every month. The return of NPS is good. It has the option of market linked investment. This increases the money in the long term.