New Tax Regime: Is 12 Lakh Tax-Free Limit Applicable for 13.1 Lakh Salary? Expert Explains

• The 2025 Union Budget made income up to 12 lakh rupees per annum tax-free under the new income tax regime.
• Taxpayer Vaibhav Jain, with an annual income of 13.10 lakh, questioned if he qualifies for the 12 lakh tax-free benefit.
• CA Balwant Jain clarifies that while the new regime offers a 75,000 standard deduction for salaried individuals, Vaibhav's income of 12.35 lakh (after deduction) exceeds the 12 lakh limit, making him ineligible for the Section 87A rebate.
• The new regime includes marginal relief, ensuring the final tax payable doesn't exceed 1.2 million for incomes slightly above 1.2 million, a benefit not available in the old regime.