look news india
News India Live, Digital Desk: The new financial year (FY 2026-27) is bringing gifts of happiness for employed people. The Government of India has replaced the decades old Income Tax Act with a new one. Income Tax Code 2025 Is being implemented. Experts believe that with the combination of the new tax slab and increased standard deduction, the annual savings of middle class employees can increase from ₹ 25,000 to ₹ 80,000.
1. Income up to ₹12.75 lakh ‘tax free’
Under the new tax regime, now there will be no tax on annual income up to ₹ 12 lakh. In this Standard deduction of ₹75,000 If it is added, then employees with salary up to ₹ 12.75 lakh will not have to pay even a single rupee tax. This is considered to be the biggest relief for the middle class so far.
2. Major changes in salary structure (Perquisites & Allowances)
According to the new draft rules, the tax exemption limit on several perquisites provided by the employer has been increased:
Meal Allowance: Now allowance up to ₹ 200 per mile will be tax free.
Staff Loan: There will be no tax on interest free loans up to ₹ 2 lakh taken from the employer.
Gift Exemption: Gift vouchers up to ₹15,000 a year will now be out of the tax net.
3. Big relief in HRA rules
Till now, the benefit of 50% HRA exemption was available only in four metros (Delhi, Mumbai, Kolkata, Chennai). Now under the new rules Bengaluru, Hyderabad and Pune Such cities can also be included in this list, which will increase the tax savings of the tenants living in these cities and will increase the in-hand salary.
4. New Tax Slab: At a Glance (New Regime)
| Annual Income (₹) | Tax Rate (%) |
|---|---|
| 0 – 4 lakh | Nil |
| 4 – 8 lakhs | 5% |
| 8 – 12 lakhs | 10% |
| 12 – 16 lakhs | 15% |
| 16 – 20 lakhs | 20% |
| 20 – 24 lakhs | 25% |
| above 24 lakhs | 30% |
5. Less TDS will be deducted, more money will come in your pocket
Since tax liability is decreasing, companies are increasing the amount deducted from your salary every month. TDS (Tax Deducted at Source) Will cut down. This simply means that even without the company increasing your salary, the amount coming into your bank account every month (take-home) can increase by ₹ 2,000 to ₹ 6,500.