Are there any actual tax-saving options left for a Rs 25L salary under the new tax regime?

Published 29 September 2026

Swathi from Chennai

I am moving to the new tax regime this year.

My salary is around Rs 25L and I know 80C is gone.

Is there absolutely any way left to reduce my taxable income, or do I just accept the slab rates?

I heard something about NPS but I am confused.

Mohan Gupta Co-founder Foliyo AI, NISM Series X-A, X-B, XXI-A Certified LinkedIn

You can still reduce your taxable income under the new regime by restructuring your salary to include an employer contribution to the National Pension Scheme (NPS). While your personal contributions to NPS no longer give you extra tax benefits under the new rules, employer contributions remain fully tax-deductible.

You need to talk to your HR and ask them to route a portion of your salary directly into a Tier 1 NPS account, you can route upto 14% of your basic salary to NPS. This lowers your overall gross taxable income unto Rs 7.4L/yr before the tax slabs are even applied. Just make sure it is going into a Tier 1 account, as the Tier 2 account acts like a regular savings account and offers zero tax benefits.

Keep in mind that NPS is a strict retirement vehicle with a long lock-in. When you hit age 60, you can withdraw up to 80% of the corpus as a lump sum. The remaining 20% must be used to buy an annuity that pays you a regular monthly pension.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.

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