Think a ₹2 lakh bonus is worth celebrating?
It absolutely is — but if you’re not careful, you might end up giving a big chunk of it away in taxes this year. And what’s worse? You might have to pay tax next year too.
But here’s the good news:
If your salary is around ₹7–8L and you’re expecting a bonus in March, you can pay ZERO tax for both years — just by shifting that bonus to April.
Let’s break down this smart and 100% legal tax-saving trick using Budget 2025 updates.
Budget 2025 Changed the Game
The Union Budget 2025 increased the rebate under Section 87A to cover taxable incomes up to ₹12,00,000 under the new tax regime. This means:
If your total income is ₹12L or less, you pay zero tax — no investments or deductions required.
It’s a massive benefit for the middle class. But if you’re not careful with your bonus timing, you could lose this rebate for no reason.
Scenario: ₹7L Salary + ₹2L Bonus = Tax Trouble
Let’s say your annual income this year is:
- Fixed Salary (CTC): ₹7,00,000
- Bonus (to be paid in March): ₹2,00,000
- Total Income for FY 2024-25: ₹9,00,000
Now you’d think ₹9L is moderate — but under the new tax regime, the moment your income crosses ₹7,00,000, you lose the rebate.
That means:
- You fall under higher slab rates
- You have no 80C or home loan deductions to reduce it
- You’ll pay around ₹30,000–₹40,000 in tax
The Fix: Defer the Bonus to April 1st
Now let’s say you request your employer to credit the ₹2L bonus on or after April 1st, 2025. What happens?
- Your income for FY 2024-25 = ₹7,00,000 → You get full rebate, pay ₹0 tax
- Your income for FY 2025-26 = ₹7L salary + ₹2L bonus = ₹9L
→ Still under ₹12L → Zero tax again!
Tax Saving Impact (Real Math):
Why This Works So Well
This isn’t tax evasion — this is smart tax planning using government-provided rules. You’re not avoiding the bonus; you’re simply shifting it to a different financial year.
This technique works especially well if:
- Your salary is ₹7–10 lakh
- Your bonus is variable or performance-based
- You’re in the new tax regime (by default from FY 2023-24)
- You have no major deductions under 80C/24b
Is This Legal?
Yes! For salary income, the Income Tax Act taxes it only when it is actually paid. So if your bonus is paid in April, it is taxed in the next financial year — even if it was discussed or announced earlier.
If the bonus is not contractually due in March, your employer can legally shift it to April. Many MNCs and startups already follow this model to reduce tax outgo for their employees.
Just speak to your HR or finance team — if the payment terms allow flexibility, you’re good to go.
Act Before March 31
Once March ends and the bonus hits your salary slip, you can’t undo it. That’s why this move must be made before March 31, 2025.
If you’re eligible, this one tweak can literally save you ₹30,000–₹40,000 in taxes — without investing in ELSS, insurance, or NPS.
Final Takeaway
If your total income is under ₹12L next year, and under ₹7L this year without your bonus — deferring your March bonus to April:
Helps you stay under the rebate limit for both years
Saves you thousands without needing deductions
Keeps your salary structure clean and compliant
Want the full breakdown + examples?
Read our detailed bonus deferral guide here →
Stox N Tax 
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