New vs previous earnings tax regime after Finances 2025: 8 wage perks to avoid wasting round Rs 1.35 lakh earnings tax beneath previous regime

Finances 2025: Listed here are 8 wage perks that taxpayers can avail to scale back their tax outgo beneath the previous earnings tax regime. (AI picture)

New versus previous earnings tax regime put up Finances 2025: The brand new tax regime now affords full tax exemption for annual earnings as much as Rs 12 lakh. Together with the Rs 75,000 commonplace deduction, people incomes as much as Rs 12.75 lakh yearly (Rs 1.06 lakh month-to-month) will now have zero tax legal responsibility from FY 2025-26 onwards.
At the moment, 6.3 crore out of 8.75 crore particular person taxpayers have adopted the brand new regime, with projections suggesting a further one crore taxpayers will swap subsequent 12 months because of decrease tax charges.
Nevertheless, it is very important be aware that while the Union Finances 2025 proposals have altered public notion of the brand new earnings tax regime, claims concerning the previous regime’s demise are untimely.
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Though the brand new tax regime seems advantageous, the previous tax regime nonetheless affords substantial tax discount alternatives by way of strategically structured wage packages with tax-efficient perks, says Sudhir Kaushik, CEO and founding father of Taxspanner. Past home lease allowance, quite a few choices exist to minimise tax obligations by way of acceptable cost-to-company restructuring.
In a column in ET, Sudhir Kaushik lists 8 wage perks that taxpayers can avail to scale back their tax outgo beneath the previous earnings tax regime:
These eight wage perks supply potential tax financial savings exceeding Rs.1.35 lakh!

*In 30% tax bracket **Paid yearly
LTA or Depart Journey Allowance
Household vacation journey value reimbursement stays tax-free when claimed twice inside 4 years. LTA should be included in CTC on the 12 months’s begin, with out later modifications or tax return claims.
Meal Coupons
Meal vouchers supply tax exemption as much as Rs 50 per meal, roughly Rs 2,200 month-to-month. Digital wallets have simplified this long-standing profit’s utilization and compliance.
Additionally Learn | Earnings Tax Slabs FY 2025-26 defined: 20 FAQs particular person taxpayers ought to examine to grasp tax charges, earnings tax profit beneath new tax regime
Newspapers & Telecom
Work-from-home web and phone bills elevated through the pandemic. These reimbursements, alongside newspaper and periodical prices, stay tax-free with correct documentation.
Gas & Journey Expense
For official taxi journey, the whole quantity is reimbursable with out tax implications. When utilizing private or firm automobiles for work functions, one can declare gas and upkeep expense reimbursements. For automobiles used each professionally and personally, the taxable worth stands at Rs 2,700 for engines under 1.6 litre and Rs 3,300 for bigger ones.
Moveable Property
Vital financial savings come up when organisations buy moveable belongings for employees. Below Part 17(2), company-purchased devices and home equipment for worker private use face solely 10% taxation. Laptop utilization incurs no tax.
Additionally Learn | New vs previous earnings tax regime after Finances 2025: Publish earnings tax slab adjustments, which tax regime is healthier for salaried center class taxpayers?
Driver’s Wage
For senior executives, driver employment choices exist. The driving force’s wages carry a modest taxable worth of Rs 900 month-to-month, providing substantial tax benefits.
Studying and Health
Organisations usually cowl gymnasium memberships and ability enhancement programs. These advantages stay tax-free with correct utilization documentation.