How to save tax in new regime

[Raghu07]

How to save tax who has 20 lpa Ctc

[garg.pulkit131]

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

[Surbhi_Pal]

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:

I have a CTC of ₹14L. Can I claim any deductions and bring down my taxable income to ₹12.75L?

Yes, as per the Budget 2025 update, salaried individuals under the new tax regime do not have to pay income tax if their taxable income is up to ₹12.75 lakh. Now, since your CTC is ₹14 lakh, your taxable income is likely to be higher, but there are ways to bring it down. First, let’s understand what CTC includes—it’s the total amount your employer spends on you, which covers salary, benefits, bonuses, and contributions to EPF (Employee Provident Fund) and NPS (National Pension System). But not…

[simha_Kidsden]

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.