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INCOME TAX UPDATE — CLARITY ON THE “NO TAX UP TO ₹19 LAKH” CLAIM

Business   |   Dec 06, 2025

Recent social-media claims suggesting “no income tax up to ₹19 lakh under the New Regime” are misleading.

Actual tax relief depends on income type, available deductions, and rebate eligibility, not on a blanket income limit.

 

What Is Actually Tax-Free?

 

Under the New Tax Regime (2025):

Salary income up to ₹12 lakh

Or up to ₹12.75 lakh including the ₹75,000 standard deduction

 

➡ Results in zero income tax, after the applicable rebate.

This applies to regular income such as salary, pension, or basic business income.

 

Where Does the “₹19 Lakh” Claim Come From?

In some specific situations — such as: additional deductions, slab-wise recalculations, particular breakups of income, a person earning around ₹19 lakh gross may still end up with a low or almost zero tax liability.

But this is not a general rule and does not apply to all taxpayers.

 

Important Clarifications:

1. Additional income is still taxable

Capital gains, interest income, dividends, or speculative income do not qualify for the same rebate.

2. The “no tax up to ₹19 lakh” claim does not apply for all income types

Only regular taxable income (salary-type) enjoys the ₹12–12.75 lakh zero-tax band.

3. Taxpayers must evaluate their income category

 

Every income component (salary, capital gains, business income, investments) is taxed differently under the New Regime.

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