"2025 Tax Reform: What Your ₹14.5L Salary Really Means"

Now lets see with an example break down of a Person Named Sai Earns r.s14,50,000/= salary, How much Tax he will be paid

INCOME TAX CALCULATION FOR ₹14.5 LAKHS (FY 2025-26)

Gross Income: ₹14,50,000

Tax Calculation Breakdown:

First ₹12 Lakhs

- Tax = ₹0 (Due to rebate of ₹60,000)

Income Between ₹12-14.5 Lakhs (₹2,50,000)

- Applicable Rate: 15%

- Tax = ₹2,50,000 × 15% = ₹37,500

Total Tax Calculation:

- Gross Tax = ₹37,500

- Less: Rebate = ₹0 (Already considered)

- Add: Health & Education Cess (4% of tax) = ₹1,500

- Final Tax Liability = ₹39,000

Monthly Tax Impact:

- Annual Tax: ₹39,000

- Monthly Tax: ₹3,250

Net Take-Home Calculation:

- Annual Income: ₹14,50,000

- Less: Tax: ₹39,000

- Net Take-Home: ₹14,11,000

- Monthly Take-Home: ₹1,17,583

Key Benefits:

- First ₹12 lakhs effectively tax-free

- Only paying tax on ₹2.5 lakhs at 15%

- Significant savings compared to old regime

- Simple calculation without multiple deductions

Note: This calculation assumes no deductions other than standard deduction and is based on the new tax regime for FY 2025-26. Please Consult Your Tax Advisor for Proper numbers
#TaxPlanning #PersonalFinance #NewTaxRegime #FinancialFreedom #india government