Income Tax: You will not have to pay even a single rupee tax on income of Rs 17 lakh, taxpayers should know this important thing..

Income tax return: Finance Minister Nirmala Sitharaman gave a big gift to the taxpayers in the Budget 2025-26. Annual income up to Rs 12 lakh has been made tax-free. But if your company changes your salary structure, then this income limit can be increased to Rs 17 lakh by taking advantage of some allowances.

According to the Income Tax Act, some allowances are tax-free in the new tax system if certain conditions are met. These allowances can help taxpayers reduce their tax liability. If you change your salary structure, then in the financial year 2026, your annual income of up to Rs 17 lakh can be made tax-free. Let's know-how-

Experts said that under the new tax system, some allowances in the Income Tax Act can help taxpayers reorganize their salary structure. If certain conditions are met, these allowances are tax-free in the New Tax System. These allowances can help the taxpayer reduce the taxable income under the new tax system.

Telephone and Mobile Bills

A salaried employee can claim an exemption on telephone and mobile bills paid by him. There is no limit to this. Therefore, if employees change their salary structure and include telephone, mobile, and internet bills, then they can get tax exemption.

Transport Allowance for Special Employee

Under the Income Tax Act, there is a provision of tax-free transportation allowance for specially abled people. This is an allowance for travel from home to office and other than this. A discount of Rs 3,200 per month or Rs 38,400 per annum is given on the transport allowance given to able-bodied employees. Let us tell you that exemption is given only to those specially abled employees who are blind/deaf/mute or orthopedically handicapped with disability of lower extremities.

Vehicle Reimbursement

Vehicle reimbursement is a facility provided by the employer to the employees for their work. This is different from the Transport Allowances available to specially abled employees. According to the Income Tax rules, the perk value of the car given by the employer for personal and official use of the employee is very low.

Know the complete calculation of saving tax -
Component Annual (B @ 30%) Annual (B @ 40%)
Basic    5,17,315 7,13,992
HRA      2,58,658 3,56,996
Special Allowance  4,99,027 2,04,011
Mobile Reimbursement 50,000 50,000
Vehicle Reimbursement 2,40,000 2,40,000
Employer's NPS Contribution 72,424 99,959
Gross Pay    16,37,424 16,64,959
Employer's EPF Contribution 62,078 85,679
Gratuity    24,883 34,343
Total CTC 17,24,385 17,84,981

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