In the budget 2025, the government gave great relief to the middle class. The Finance Minister said in the budget speech that there will be no tax on annual income up to Rs 12 lakh. Standard deduction of 75 thousand rupees is also being received above the salary of 12 lakhs. This means that those whose salary is Rs 12,75000 will not have to pay any tax. However, even if a person’s salary is 13.70 lakh rupees, he will not have to pay any tax. Now the question comes how this will happen. We are explaining the whole thing in easy language below.
Taxpayer will get the benefit of NPS
This year, in the budget, in the new tax regime, up to 14 % of the basic salary of the employee for investment in NPS under Section 80CCD (2) of Income Tax has been deducted. This limit is less than 10 percent in Old Tax Reseam. In the New Tax Reseam, the taxpayer who invests in NPS will get the benefit of big tax deduction. Through NPS, he can save about 96 thousand rupees at a salary of Rs 13.70 lakh. However, to avail such a huge cut, the employer ie the company will have to give the benefit of NPS from the cost of the cost.
No tax will be paid in this way
Think of it in such a way that if a person’s annual salary is Rs 13.70 lakh, then 6.85 basic salary will be considered. Now if 14 percent contribute to NPS, then the investor invests Rs 96000. Now after this, calculate the standard deduction of 75 thousand rupees. In this way, no tax will have to be paid on an annual income of ₹ 13.70 lakh if the taxpayer has selected the new tax reset.
Many investors still do not invest in NPS. The NPS scheme is quite safe and secure scheme. Investors can prepare a large fund by investing in it. Let us tell you that the NPS scheme started about 10 years ago.