India, March 31 -- Taxpayers will be liable to pay zero income tax from April 1, 2025, if their income is up to Rs.12 lakh per annum.

However, even if the income exceeds that, a standard deduction of Rs.75,000 and a 14% employer contribution to the National Pension System (NPS) can further reduce the tax liability.

Taking an example of a person earning Rs.21 lakh per annum including salary income, interest income from savings accounts and dividends from equity shares, a standard deduction of Rs.75,000 and an Employer contribution to an NPS account of Rs.1.5 lakh can be claimed, according to an Economic Times report.

Tax is calculated based on slabs which are detailed as follows:

1) The first income tax slab is between 0 and Rs.4,00,00...