Archive · 7 Aug 2025
How Salaried Employees Can Pay Zero Tax on ₹18.5 Lakh
Imagine you earn a good salary, but don't want to pay a lot of taxes.
The government has different ways to help reduce the amount of tax you owe.
You can first take off a standard amount.
Then, if your employer puts money into your retirement account, that can reduce your taxes.
You can also save on taxes if you invest in things like a retirement plan or home loan interest.
This helps people with high salaries keep more of their money.
Salaried employees can potentially eliminate tax liabilities on a gross income of ₹18.5 lakh.
Standard deduction of ₹75,000 can be claimed on the ₹18.5 lakh gross income.
NPS offers tax benefits, up to 14% of basic pay, lowering taxable income.
EPF tax benefit is available on the employer's contribution, reducing taxable income further.
Various schemes like PPF, Sukanya Samriddhi, and home loan interest offer additional tax benefits.
- Who
- Salaried employees in India.
- What
- Methods for salaried employees to potentially reduce their tax liabilities to zero on an income of ₹18.5 lakh.
- When
- The information applies to the new tax regime for the financial year 2025-26.
- Where
- India.
- Why
- To inform salaried employees about various tax-saving schemes and deductions available to them.
Income and Taxes
Tax Saving Strategies
Tax Liabilities
Income and Taxes
High income comes with heavy taxes, reducing take-home pay.
Tax Saving Strategies
Using legal schemes can make tax liabilities zero.
- Gross Income
- ₹18.5 lakh
- Standard Deduction
- ₹75,000
- NPS Benefit
- Up to 14% of basic pay
- EPF Benefit
- 12% on employer's contribution
- PPF/Sukanya Samriddhi Benefit
- ₹17,500/₹100,000 respectively
- Post Office Scheme
- ₹3,500 interest tax saving
- Home Loan
- Interest deduction possible
