How can I save tax on my salary (legally)?

⚡ Short answerUnder the old regime you can legally cut salary tax by claiming HRA, the ₹1.5 lakh Section 80C limit (EPF, PPF, ELSS, life insurance, children's tuition), ₹50,000 extra NPS under 80CCD(1B), health insurance under 80D, and home-loan interest under Section 24(b). Under the new regime, the main levers are the ₹75,000 standard deduction and employer NPS under 80CCD(2).

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Old-regime tax savers

Maximise 80C (₹1.5 lakh), add ₹50,000 NPS under 80CCD(1B), claim 80D health insurance (₹25,000, or ₹50,000 for senior parents), HRA if you pay rent, and ₹2 lakh home-loan interest under 24(b). Salary restructuring (LTA, food allowance) helps too.

New-regime reality

The new regime removes most deductions but has lower slabs and the ₹12 lakh rebate. The big remaining deduction is employer's NPS contribution under 80CCD(2) — up to 14% of basic salary — which is tax-free. Compute both regimes to pick the cheaper one.

Related questions

Which tax-saving option is best for salaried employees?

If you're on the old regime, ELSS (80C) plus NPS (80CCD(1B)) plus health insurance (80D) is a strong, liquid combination. On the new regime, ask your employer to route NPS under 80CCD(2).

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General information for AY 2026-27, not professional advice. Rules change with each Finance Act / notification and depend on your facts — verify with a licensed CA or advocate before acting.