How much tax will you pay if you earn Rs 12 lakh?
and more biz news
Hello there,
I hope your week is off to a great start!
In today’s edition, we’re diving into a hot topic that’s on everyone’s mind: How much tax will you pay if you earn Rs 12 lakh? The tax structure can be a bit tricky, but don’t worry - I’ve broken it down for you.
But that's not all - we've got some juicy updates from the business world, tech startups, and even the latest buzz from Bollywood.
Let’s get started…
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📌 Global News
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Will you pay Rs 61,500 as income tax on Rs 12.10 lakh income?
Starting from FY 2025-26, good news for those with a taxable income of up to Rs 12 lakh - you won’t have to pay any income tax!
But what if your income is just above Rs 12 lakh after all those deductions?It could lead to a significantly higher tax bill.
But don’t worry, there’s a neat little trick called marginal relief that could save you from paying that steep tax.
So, what’s marginal relief all about? Well, it’s a special provision that ensures you don’t get hit too hard when your income just nudges past the Rs 12 lakh mark.
The idea is simple: If your income is slightly higher than Rs 12 lakh, your tax shouldn’t jump disproportionately.
For example, if your income is Rs 12.25 lakh, you could end up paying just Rs 26,000 (after applying for marginal relief) instead of Rs 63,750!
But, there’s a catch.
This relief only applies until your income reaches about Rs 12.75 lakh. Beyond that, you’ll have to pay full tax according to the new income tax slabs.
Oh, and if you’re wondering how to bring down your taxable income in the first place - aside from standard deductions of Rs 75,000 for salaried individuals - you can also claim deductions if your employer contributes to your NPS account under Section 80CCD(2).
Section 80CCD(2) offers a tax benefit to employers for their contributions to an employee's pension scheme.
If your employer contributes to your NPS account, they get a tax benefit under this section.
However, this benefit is capped at 20% of the employer’s total income from the previous year.📌 Now, Bolly News
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So, that’s it for today. If you enjoyed this edition, subscribe to hear from us every day!
See ya 👋
