Revenue tax return (ITR) submitting has already began for FY 2024-25. In the meantime, Revenue Tax (I-T) Division has prolonged the deadline to file ITR for FY 2024-25 to September 15, 2025. The final date was July 31, 2025 earlier. There are two tax regimes- outdated and new regime that taxpayers can select as per their wage and investments all year long. On this article, we’ll see knowledgeable’s calculations on learn how to pay 0 tax on Rs 15,50,000 annual revenue underneath the brand new tax regime for FY 2025-26.
New Tax Regime: Attaining 0 tax
To pay zero tax on Rs 15.5 lakh revenue underneath the brand new regime, you must scale back your taxable revenue to Rs 12,00,000. For salaried worker, new tax regime permits to get an additional advantages of Rs 75,000 (normal deduction).
House loans present precious tax advantages underneath each the outdated and new tax regimes, however the nature and extent of those advantages differ, say tax planners.
Deductions for dwelling loans underneath the brand new tax regime
The brand new tax regime affords decrease tax charges however eliminates most deductions and exemptions. You may declare limitless deductions for curiosity on a house mortgage underneath let-out property and no deduction for self-occupied property, in line with tax planners.
Perceive by chart
Further elements to weigh
Though dwelling mortgage advantages play an vital position, they shouldn’t be the one standards when deciding on a tax regime. A number of different elements advantage cautious consideration.
Calculations to pay 0 tax on wage of Rs 15,50,000/annum
Wage breakup
CTC: Rs 15,50,000
Fundamental Pay: Rs 6,00,000
Private Allowance: Rs 3,44,540
PF: Rs 21,600 (minimal opted)
Gratuity: Rs 28,860
Variable Pay: Rs 1,55,000 (10% of fundamental wage)
Flexi pay tax-free elements: Rs 4,00,0000
Whole CTC: Rs 15,50,000
Wage after normal deduction
Rs 15,50,000- Rs 75,000= Rs 14,75,000
NPS
For those who go for NPS, then you may make investments 14 per cent of your fundamental wage underneath the brand new tax regime, as per the federal government guidelines. The restrict is 10 per cent of fundamental wage underneath the outdated tax regime.
Rs 15,50,000 – Rs 84,000 (6,00,000*14%) = Rs 13,91,000
Flexi Pay tax-free element
Rs 13,91,000 – Rs 4,00,000= Rs 9,91,000
House mortgage curiosity + rental revenue set-off
The restrict for that is Rs 2,60,000 if the home is let loose.
Curiosity deduction: Rs 2,00,000
Rental revenue adjustment: Rs 60,000
Rs 9,91,000 – Rs 2,60,000 = Rs 7,31,000
Different deductions
Present, household pension, and others: Rs 50,000
Rs 7,31,000– Rs 50,000 = Rs 6,81,000 (ultimate taxable revenue)
Therefore, the tax shall be 0 as the ultimate taxable revenue is under Rs 12,00,000.
