Pay Zero Tax on Annual Income Upto Rs. 19,00,000 Under New Tax Regime? Check How

The government of India has amended the tax slabs under the new tax regime, so that individuals prefer the new tax regime over the old tax regime. Although the new tax regime is now the default option, the old tax regime will continue to be available as a choice for taxpayers. The government has notified income upto Rs. 12 lakh as tax-free, standard deduction is included in it. However, tax on income can be saved slightly more than that. The amendments made in the new tax regime are effective on the financial year 20250-26. These revisions in the tax regime have opened various privileges for taxpayers to save their income by not paying tax on it. Taxpayers must know the fact that they can save their entire annual income of upto Rs. 19,00,000 by not paying tax on it. Below are listed ways through which this can be made possible:

Pay Zero Tax on Annual Income upto Rs. 19,00,000

In this article, we will discuss about various ways through which one with an annual income of upto Rs. 19,00,000 under the new tax regime can save his/her entire income by paying zero tax on it.

Tax Slabs Under New Tax Regime in FY 25-26

Firstly, take a look at the recent tax slabs available under the new tax regime

• Rs 0 – Rs 4 lakh: Nil tax
• Rs 4 lakh – Rs 8 lakh: 5%
• Rs 8 lakh – Rs 12 lakh: 10%
• Rs 12 lakh – Rs 16 lakh: 15%
• Rs 16 lakh – Rs 20 lakh: 20%
• Rs 20 lakh – Rs 24 lakh: 25%
• Above Rs 24 lakh: 30%

New Tax Regime: Standard Deduction

The new tax regime offers a standard deduction of upto Rs. 75,000.

How to Pay Zero Tax on Monthly Revenue Upto Rs. 19,00,000?

Yes, it is possible, if you have an annual income upto Rs. 19,00,00,0, then you may not need to pay any tax on it by following some specific conditions. Let us discuss about these specific conditions in addition to their calculations:

Salary Breakdown

In this example, the employee chooses to contribute to the National Pension System (NPS) and opts for the minimum required contribution to the Employees’ Provident Fund (EPF).

Here’s how the salary components are structured under these choices:

• Basic Salary: Rs. 9,97,000
• EPF Contribution: Rs. 21,600 (minimum selected)
• Gratuity: Rs. 45,600 (calculated at 4.8% of basic pay)Employer’s NPS Contribution: Rs. 1,33,000
• Variable Pay: Rs. 95,000
• Tax-Free Flexible Benefits: Rs. 3,00,900
• Personal Allowance: Rs. 3,06,900
• Total Cost to Company (CTC): Rs. 19,00,000

This is just an illustrative salary structure for calculation purposes. Actual figures and components may differ depending on the employer.