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Income tax calculation under new income tax regime: How to pay zero tax with CTC of around Rs 17 lakh by restructuring salary – The Times of India

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Income tax calculation under new income tax regime: How to pay zero tax with CTC of around Rs 17 lakh by restructuring salary – The Times of India


Various allowances within the new income tax regime can assist in reducing the taxable income to the Rs 12 lakh limit.

Latest income tax calculation post Budget 2025: Starting April 1, 2025, individuals earning up to Rs 12 lakh in taxable income under the new income tax regime will not need to pay any tax. For those earning above this threshold, there are ways to structure their salary to maintain taxable income below Rs 12 lakh. Various allowances within the new income tax regime can assist in reducing the taxable income to this limit.
ET quotes Harsh Bhuta, Partner of Bhuta Shah & Co., a tax consulting firm as saying, “Under the new tax regime, there are certain allowances in the Income Tax Act that can help taxpayers to rejig their salary structure. These allowances are exempt from tax in the new tax regime if certain conditions are met. These allowances can help taxpayers to reduce taxable income under the new tax regime.”

New Income Tax Regime: Reimbursements Exempt From Tax

According to the ET report, several allowances are available for taxpayers to restructure their salary and lower their taxable income:
Also Read | ITR filing with latest income tax slabs post Budget 2025: Will taxpayers with income below Rs 12 lakh have to file tax return?
1. Conveyance reimbursement: Employers can reimburse work-related travel expenses incurred by employees. Bhuta says, “The conveyance reimbursement received by an employee is exempt if the same is expended while commuting to the workplace. An employee is required to submit bills to claim reimbursement.”
2. Transport allowance for specific employees: This provision applies to specially-abled individuals. Unlike conveyance reimbursement, this allowance covers travel between home and workplace. Bhuta says, “The transport allowance received by specially-abled employees is exempted up to Rs 3,200 per month or Rs 38,400 per annum. Only those specially-abled employees are exempted if they are blind/deaf/dumb or orthopaedically handicapped with a disability of the lower extremities.”
3. Phone bills: Salaried employees can receive tax exemptions for reimbursed telephone bills. According to Yogesh Kale, Executive Director of Nangia Andersen LLP, “There is no limit prescribed concerning the exemption of telephone and internet bills under either of the old or new income tax regimes. However, as an ideal practice, the reimbursement amount should be reasonable, considering an employee’s designation and the roles and responsibilities.”
He further explains, “As telephone and internet expenses generally go hand in hand, many employers provide exemptions in respect of internet reimbursements to employees under the income tax rules, though the said rules provide that telephone expenses incurred by the employer on behalf of the employees do not qualify as perquisites in the old or new tax regime and do not specifically mention internet expenses.”
Also Read | New vs old income tax regime after Budget 2025: 8 salary perks to save around Rs 1.35 lakh income tax under old regime
Staff members have the option to restructure their salary packages to incorporate telephone, mobile and internet bill reimbursements, potentially lowering their taxable income.
4. Car leasing: Employers’ car leasing arrangements can contribute to reducing taxable salary. When an employer provides a vehicle for both personal and official use, it is classified as a perquisite under the Income Tax Act.
Kale explains, “The perquisite value of a car given by the employer for the employee’s personal and official use as per the income tax rules is very low. The valuation mechanism remains the same under the old and new regimes. The taxable value of such perquisite is Rs 1,800 per month if the engine’s cubic capacity does not exceed 1.6 litres. An amount of Rs 2,400 per month would be taxable if the engine’s cubic capacity exceeds 1.6 litres.”
He continues, “An amount of Rs 900 per month is added to the value of perquisite if the chauffeur is also provided to run the car. (Employees should remember that expenses on maintenance and running are met or reimbursed by the employer.) Thus, the amount taxable as perquisite in respect of a car given by the employer for the employee’s personal and official use is much less as compared to the actual amount of expenditure that may be incurred by the employer.”

How To Save Tax

Here’s how individuals can optimise tax savings under the new tax regime through reimbursements.

Components Yearly (B @ 30%) Yearly (B @ 40%
Basic 5,17,315 7,13,992
HRA 2,58,658 3,56,996
special allowance 4,99,027 2,04,011
Mobile reimbursement 50,000 50,000
Conveyance reimbursement 2,40,000 2,40,000
Employer’s NPS contribution 72,424 99,959
Gross Pay 16,37,424 16,64,959
Employer’s EPF contribution 62,078 85,679
Gratuity 24,883 34,343
Total CTC 17,24,385 17,84,981

Source: ET
The analysis presents two scenarios with varying basic salary percentages (30% and 40% of CTC). Higher basic salary percentages within the CTC enable greater tax savings at elevated CTC levels. Tax exemptions apply to mobile and conveyance reimbursements when bills are submitted timely to employers. Both cases include employer NPS contributions at 14% of basic salary under the new regime.

Particulars Amount (@30%) Amount (@40%)
Gross pay 16,37,424 16,64,959
Less: Mobile reimbursement 50,000 50,000
Less: Conveyance reimbursement 2,40,000 2,40,000
Net Pay 13,47,424 13,74,959
Less: Standard deduction 75,000 75,000
Net taxable salary 12,72,424 12,99,959
Less: Employer’s NPS contribution 72,424 99,959
Net taxable income 12,00,000 12,00,000

Source: ET
The net taxable income reduces to Rs 12 lakh in both instances. This reduction occurs through submission of mobile and conveyance bills, claiming the Rs 75,000 standard deduction under the new regime, and employer NPS contributions under Section 80CCD (2) of the Income Tax Act.
These calculations exclude additional income sources like share dividends, savings account interest, and fixed deposit returns. Including these would alter the final calculations.
Kale states, “The new tax regime from FY 2025-26 (AY 2026-27) offers lower tax rates but limits many salary-based exemptions and deductions. Although options such as the ones discussed above provide a bit of scope for reducing the tax burden, the opportunities are more limited than under the old regime.”
Under the new regime, meal coupons (Sodexo) from employers are taxable, whereas the old regime allowed tax exemption up to Rs 26,400 yearly (Rs 2,200 per month).
Also Read | Income Tax Slabs FY 2025-26 explained: 20 FAQs individual taxpayers should check to understand tax rates, income tax benefit under new tax regime





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Forever 12th man: Why RCB fans remain loyal after 18 years and no trophy 

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Forever 12th man: Why RCB fans remain loyal after 18 years and no trophy 


It has been 17 seasons, countless heartbreaks, and still no Indian Premier League (IPL) trophy. Yet, every year, as the summer heat rises, so does the roar of the Royal Challengers Bangalore’s (RCB) faithful fans. Clad in red and gold, with voices hoarse from chanting “RCB, RCB” and hearts full of hope with slogans like “Ee Sala Cup Namde” (This time, the cup is ours), RCB fans return match after match, season after season, undaunted by the scoreboard. In a world where loyalty often hinges on success, the RCB fan base stands out to be resilient, passionate, and endlessly optimistic.

RCB, currently playing its 18th season, is one of the most popular and passionately supported franchises in the IPL. Based in Bengaluru, the team was founded in 2008 and is owned by United Spirits, a subsidiary of British beverage company Diageo. Despite boasting some of the biggest names in cricket over the years, including Anil Kumble, Virat Kohli, AB de Villiers, Chris Gayle, and Faf du Plessis, RCB has never won an IPL title, which has often made them the subject of memes and heartbreak in equal measure.

The team had reached the finals three times in 2009, 2011, and 2016, but narrowly missed the crown each time. Their tagline, “Ee Sala Cup Namde, “ has become a rallying cry and meme rolled into one, capturing both the hope and humour of the RCB journey. And for their fans, the journey has always mattered more than the destination. 

RCB fans wait as rain delays the start of the IPL 2025 match between Royal Challengers Bengaluru and Punjab Kings at the M. Chinnaswamy Stadium, Bengaluru, on April 18, 2025.
| Photo Credit:
K. MURALI KUMAR

Passion and team spirit

We spoke to the “12th man army”, as RCB fondly calls its fans from across the State, questioning why they continue to support the franchise despite not bringing home a cup.

Speaking to The Hindu, Rakhi Chadaga, a 29-year-old HR professional, said, “For us RCB fans, it is not about winning the cup. Of course, that would be icing on the cake. But it is more about how RCB plays each game, the thrill of it. From the good old days of Anil Kumble, Rahul Dravid, Chris Gayle, ABd to the forever favourite Virat, we support RCB for the B (Bangalore) not the C (cup).”

Tejas Narayanappa, a data engineer, said, “I am an RCB fan because, let’s face it, if you are born in India, you are pretty much destined to support cricket, and if you’re from Bengaluru, RCB is the team you are drawn to! It’s almost like a rite of passage. Growing up in the city, watching matches at M. Chinnaswamy Stadium, and cheering for the team, it’s part of Bengaluru and our identity.” 

Fans during the match between Rajasthan Royals and Royal Challengers Bangalore in Bangalore on April 20, 2013.

Fans during the match between Rajasthan Royals and Royal Challengers Bangalore in Bangalore on April 20, 2013.
| Photo Credit:
K. BHAGYA PRAKASH

Inspiration to many

Veeresh Badiger, a 27-year-old video editor, has been a fan of RCB since 2013. “For me, it all started with fantastic players like AB de Villiers and Chris Gayle. As I grew up, I realised RCB is not just about star players, but it is about passion, team spirit, and giving your all every season. Watching them over the years taught me a lot – staying loyal, never giving up, living in the moment, working hard, and believing in yourself.” Veeresh added that these lessons helped him become mentally stronger and apply the same in my life. “RCB has become more than a team for me; it has played a big role in my personal growth,” he added.  

“From watching Karnataka’s legends like Dravid and Kumble to witnessing Virat Kohli grow from a young under-19 player into a symbol of loyalty and passion, RCB has always felt personal. With ABd and Chris Gayle redefining T20 entertainment, this team did not just play, they inspired. More than anything, RCB stands for the spirit of never giving up. No matter the season, no matter the odds, they fight till the end. And every time I see that red and gold jersey, I believe in them all over again,” said Anurag Sharma a theatre artist.

Srinivasachari G., from Nangali Village, Kolar, said it always feels like he is part of the RCB family. “I’m emotionally attached to the team, and going to Chinnaswamy feels like home. Every year, we carry a lot of emotions, every win, every loss, every game we feel and enjoy wholeheartedly. Yes, we don’t have a trophy, but the team with zero trophies has the highest number of fan following across the country, RCB is the Heart of IPL,” he said.

RCB fans during the match between Royal Challengers Bangalore and Sunrisers Hyderabad at M. Chinnaswamy Stadium in Bangalore on May 4, 2014.

RCB fans during the match between Royal Challengers Bangalore and Sunrisers Hyderabad at M. Chinnaswamy Stadium in Bangalore on May 4, 2014.
| Photo Credit:
K. MURALI KUMAR

Fans of all ages 

While RCB is known for having fans who have been following the franchise since 2008, older and younger fans have also been growing for the team. Ravi Subramaniam, at 72, is a die-hard RCB fan.

“I have seen cricket from the days of B.S. Chandrasekhar and E.A.S. Prasanna. But there is something about RCB that keeps me young at heart. I have not followed RCB from the beginning, I started watching the matches a couple of years ago with my children and grandchildren just to spend some time with family. But they had me hooked. We may not have a trophy, but we have heart. And as long as there is a match at Chinnaswamy, I will be there, with my flag, my whistle, and my hope,” he said cheerfully.

RCB fans during the match between Royal Challengers Bangalore and Sunrisers Hyderabad at the M. Chinnaswamy Stadium, Bengaluru, on May 29, 2016.

RCB fans during the match between Royal Challengers Bangalore and Sunrisers Hyderabad at the M. Chinnaswamy Stadium, Bengaluru, on May 29, 2016.
| Photo Credit:
K. MURALI KUMAR

Huda Syed, at 15, is as passionate a fan as Subramaniam. The 10th grade student said, “I have been an RCB fan literally since I was born, not because of the trophies, but because of the passion and energy this team brings to the field. Supporting RCB is more than just backing a team, it is about believing in potential, loving the game, and standing by your favourites through every high and low. Watching legends like Virat Kohli give their all every single match, win or lose, has been nothing short of inspiring. Yes, we have not lifted the IPL trophy yet, but the loyalty, the Chinnaswamy roar, and the unwavering belief of the fans make us champions in spirit. RCB is a feeling, not just a franchise. And we will always say it loud ‘Ee Sala Cup Namde.”



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Two Inter-state Burglars Arrested

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Two Inter-state Burglars Arrested



Karimnagar: The Kothapally police of Karimnagar Police Commissionerate on Wednesday arrested two members of an inter-state burglary gang from Madhya Pradesh and produced them before a local court, which remanded them to judicial custody.

According to police, the accused were involved in two major burglaries last July. In one incident, thieves broke into a locked house in Gunturpalli village under Karimnagar Rural Police Station limits and stole gold ornaments worth ₹2.25 lakh. In another case near PVR Gardens on Malkapur Road, miscreants looted the residence of K. Rajendra Prasad, making away with liquor bottles and a Hero Honda motorcycle.

Following complaints, an investigation was launched under the direction of Police Commissioner Gouse Alam and the supervision of Rural ACP Shubham Prakash. The case was led by Kothapally SHO (Trainee IPS) Vasundhara, who identified the suspects as Pradeep (29), Hatru Singh (41), Vikram, and Jitendra — all hailing from Dhar district in Madhya Pradesh.

Pradeep was caught in March. Based on a tip-off, a special police team led by SI Sambamurthy arrested Hatru Singh from Naravali village in Madhya Pradesh and brought him to Karimnagar. He was produced before the court and remanded. The remaining accused, Vikram and Jitendra, are still absconding.

ACP Shubham Prakash commended SI Sambamurthy and team members Srinath, Abdul Khadeer, Shareef, Samba Reddy, and Devender for their coordinated efforts in cracking the case.



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Chandrapur Education Department Changes School Hours to Protect Students from Heat Wave

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Chandrapur Education Department Changes School Hours to Protect Students from Heat Wave




Chandrapur’s education department mandates morning school hours to ensure student safety during extreme heat conditions.



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