Under India's New Tax Regime, salaried employees and pensioners can claim a ₹75,000 standard deduction, employer NPS contributions (up to 14% of salary), and interest deductions on home loans for let-out properties, reducing taxable income.
General Motors is laying off hundreds of salaried employees in its information technology operations.
General Motors is laying off hundreds of salaried employees in its information technology operations.
Salaried employees earning over Rs 1.5 lakh annually must obtain Form 123 (formerly Form 12BA) from their employers by April 30, 2026 for Assessment Year 2026-27. This form details all perquisites including meal card benefits, accommodation, vehicles, and other perks. The ITR filing deadline is July 31, 2026. Meal card tax benefit is up to Rs 200 per meal under both tax regimes for Tax Year 2026-2027.
Salaried employees can claim meal card tax benefits under both old and new tax regimes from Tax Year 2026-27 onwards. For AY 2026-27, the benefit is restricted to the old tax regime with a Rs 50 per meal limit, while Tax Year 2026-27 allows Rs 200 per meal under both regimes. Proper ITR reporting and documentation are essential for claiming these exemptions.
Salaried employees in India face uncertainty as companies await final government notifications on new labour codes and tax rules. While organizations have run simulations, widespread implementation remains delayed. The shift towards higher basic pay (50% of CTC) will increase EPF and gratuity contributions, potentially reducing monthly take-home salary but strengthening long-term retirement benefits. New income tax rules effective April 1 have raised tax-exempt limits on children's education and hostel fees, available only under the old regime.
