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…
📌 Top Headlines of the Day
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Wedding expenses have surged by 28% over the past 2 years, reaching ₹32-35 lakh
BlackRock to hire 1,200 employees as it expands its two support hubs in India
Lemon Tree Hotels jumps 5% after announcing Q3 results
📌 Startup News
MobiKwik posts ₹269 crore revenue in Q3 FY25
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GST authorities withdraw ₹5.91 crore tax demand against Zomato
Cashfree Payments secures $53 million in funding, led by KRAFTON
📌 Global News
Alphabet's shares fall 6% after revenue misses expectations
Nintendo's profits have fallen by 42%
Bitcoin drops to $96,900
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
‘Sky Force’ second-week box office earnings have sharply dropped to Rs. 102.95 crore
‘Bade Miyan Chote Miyan’ rakes in Rs 22.65 crore on Day 2
‘Animal’ is on track to join the 500 Crore Club
So, that’s it for today. If you enjoyed this edition, subscribe to hear from us every day!
See ya 👋