How to save tax who has 20 lpa Ctc
Hi @Raghu07
Not many deductions are available in new tax regime because of the higher slab benefits already available. For instance in old regime, 30% tax is applicable over 10 lakhs whereas in new regime the same is applicable over 30%. Hope this clarifies.
Thanks
Hi @Raghu07,
The new regime has subsidised tax rates and hence does not allow many deductions. However, as you are a salaried employee, the employer’s contributions to EPF (Employee Provident Fund) and NPS (National Pension System) are tax-exempt. The details are covered in this thread:
Saving tax under the new regime requires smart planning. Maximize deductions like NPS, EPF, and home loan interest. Opt for employer benefits like HRA and meal coupons. Invest in tax-friendly options such as PPF and ELSS. Plan expenses wisely to reduce taxable income and ensure compliance with tax laws.