Income tax planning

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This discussion explores income tax planning for an individual with a CTC of £14 lakh. The user is trying to understand how claiming LTA and meal cards affects their taxable income, especially when comparing it to the new tax regime. Advice is given on optimising LTA claims to stay below the taxable income threshold and a recommendation is made to use the new tax regime due to the inability to claim HRA.

PP Ajesh

PP Ajesh (Querist)
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06 April 2025 Sir,

My CTC is 14 lakh. I use the meal card option which is 26,000 Rs deducted annually from my salary and 60,000 LTA which is also deducted from my salary. After deducting PF, meal card and LTA, my taxable income is around 12,31,000 which less than the taxable income of 12,75,000 as per the new tax regime so I am hoping there will be no tax deducted.

But my question is what happens when I get the 60,000 at the end of the year if I don't claim LTA and then my taxable income becomes 12,91,000. Does this mean I have to pay tax on the full amount?

I pay a rent of 25,000 every month but I don't have the owner's PAN to claim HRA so in this case, which tax regime do you suggest? I don't have any other investments.

Thanks for your help.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 April 2025 Use New Tax Regime (since HRA is not claimable).

Try to claim LTA (even partially) to keep taxable income below ₹12,75,000.

If LTA is not claimed, you’ll owe only negligible tax.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 September 2025 Good luck..

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