New Delhi: The month of May is significant for most employees, as their salary for April typically increases on May 1. Do you know that Ravi is also waiting for May 1, because on that day, the salary is transferred to Ravi’s account. However, this time, Ravi is going to receive an increased salary without an appraisal.
Not only Ravi, there are lakhs of such salaried employees across the country. Whose appraisal will increase? The most important thing is that Ravi knows how much increase will be seen in the salary. Ravi’s first salary of the new financial year will increase, which will prove to be good news.
Salary will increase
Ravi’s monthly salary is up to 1 lakh rupees, which translates to an annual income of 12 lakh rupees. Ravi had also opted for the new tax regime last year. However, Ravi’s salary will increase only when the financial year changes. This year, the government provided significant assistance in income tax.
Did you know that, according to the New Tax Regime, there is no tax on income up to Rs 12 lakh? In the financial year 2024-25, there is no tax on up to Rs 7 lakh; however, this time the government has increased it by Rs 5 lakh. In the financial year 2025-26, an income of Rs 12 lakh was shown as being outside the tax category.
Know how much the salary has increased for those earning 1 lakh
For example, Ravi’s monthly salary is Rs 1 lakh. Last year, Ravi had to pay Rs 71500 income tax annually on this salary under the New Tax Regime, that is, Ravi had to pay Rs 5958 income tax every month. It was deducted from the salary till March 2025. However, this money will now be saved.
This amount will now be reflected in the salary for April. Additionally, in Budget 2025, the central government has increased the tax rebate amount under Section 87a to Rs 60,000. Under the New Tax Regime (2025), on an income of Rs 12 lakh, the tax payable is Rs 52,500 as per the tax slab. However, if a tax rebate of Rs 52,500 is also available under Section 87a, then no tax is payable.