This April, a game-changing tax update is here: individuals earning up to ₹12 lakh annually now fall into the tax-free bracket under the new tax regime! For many, this is a welcome relief — but for those earning above ₹12 lakh, it's a signal to rethink tax planning, act early, and optimize smartly.

In this blog, we'll explore:

• 1. What this tax slab change means
• 2. How to plan and save taxes if your income crosses ₹12 lakh
• 3. Actionable tips you can start using now
• 4. How Trakintax can guide you through this transition and help you file returns efficiently Let’s dive in.

Understanding the New Tax Slab from April 2025 with Trakintax

The government’s revised tax structure under the new tax regime has made the first ₹12 lakh of income completely tax-free. Previously, even the earlier slab up to ₹10 lakh had a marginal tax rate of 10–15%. This means:

• 1. Income up to ₹12 lakh → 0% tax
• 2. Income above ₹12 lakh → taxed at standard slab rates (e.g., 10%, 15%, 20% depending on income band)

Why You Need to Act Now If You Earn More Than ₹12 Lakh

If your total taxable income exceeds ₹12 lakh:

• 1. Any income above ₹12 lakh is now fully taxable, without any basic exemption.
• 2. That means proactive tax-saving strategies (like deductions and planning) become even more valuable.
• 3. Waiting until the end of the financial year often means missing out on optimal deductions and investment timing.

With Trakintax, we help you map your income projections, choose the right deductions, and take action at the right time to avoid last-minute tax shocks.

How to Reduce Tax if You Earn ₹12+ Lakh with Trakintax

Here are practical strategies you can start using immediately:

1. Maximize Section 80C Investments (up to ₹1.5 lakh)

• 1. Popular tools: PPF, ELSS mutual funds, life insurance premiums, National Savings Certificate (NSC)
• 2. Investing early spreads your saving load and benefits from compound growth
• 3. Trakintax helps pick the right combination based on your risk profile and liquidity needs

2. Use Section 80D for Health Insurance Premiums

• 1. Claim up to ₹25,000 for self and family, and an additional ₹25,000 (₹50,000 if senior citizens) for parents
• 2. Buying or renewing the policy early in the year gives more coverage and peace of mind
• 3. Trakintax reviews your eligibility and helps you submit the right documents

3. Prepay Home Loan Interest or Principal Repayment

• 1. Under the new regime, only interest is deductible (maximum ₹2 lakh per year under Section 24)
• 2. If possible, prepay interest or commit EMI payments early for the benefit in the current year
• 3. Trakintax can help simulate your tax savings if you prepay versus regular EMI

4. Opt for NPS (Section 80CCD(1B)) – Additional ₹50,000 Deduction

• 1. An additional ₹50,000 deduction beyond 80C promotes retirement planning
• 2. Especially useful if you’re near a higher tax slab and need more deductions
• 3. Trakintax helps you compare NPS returns and your liquidity profile

5. Claim Home Loan Deductions (Section 24) and Employer Housing Benefits

• 1. If you live in an employer-provided house, make sure housing rent allowance (HRA) is properly structured
• 2. Self-occupied property allows up to ₹2 lakh interest deduction
• 3. Trakintax advises on how best to structure HRA and property ownership to maximize savings

6. Plan Salary Structure Efficiently

• 1. Ensure components like medical reimbursement, transport allowance, or LTA are utilized legally under the new regime (some benefits may still apply)
• 2. Structuring compensation wisely can reduce taxable income
• 3. Trakintax works with HR and employees to design tax-efficient pay packages

Trakintax helps calculate these scenarios so you have clarity and can act now—not later.