Tax Saving by Salary — FY 2025-26

Pick your CTC to see your current tax bill, all deduction options under 80C, NPS, health insurance, HRA, and home loans — and exactly how much you can save.

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Current Tax

Exact tax under new and old regime

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80C Benefits

ELSS, PPF, NSC, LIC and more

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NPS Savings

Extra ₹50,000 under 80CCD(1B)

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Health Insurance

80D for self and parents

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HRA Exemption

Rent-based exemption calculation

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Home Loan

Sec. 24(b) interest deduction

Popular CTC Slabs

Jump straight to a tax-saving guide for your salary.

5 LPA

Tax: ₹0

Save up to: ₹0

6 LPA

Tax: ₹0

Save up to: ₹15,234

7 LPA

Tax: ₹0

Save up to: ₹36,142

8 LPA

Tax: ₹0

Save up to: ₹56,235

10 LPA

Tax: ₹0

Save up to: ₹46,800

12 LPA

Tax: ₹0

Save up to: ₹56,606

15 LPA

Tax: ₹87,223

Save up to: ₹70,200

20 LPA

Tax: ₹1,75,168

Save up to: ₹70,200

25 LPA

Tax: ₹2,92,553

Save up to: ₹70,200

30 LPA

Tax: ₹4,39,371

Save up to: ₹70,200

40 LPA

Tax: ₹7,40,789

Save up to: ₹70,200

50 LPA

Tax: ₹10,42,204

Save up to: ₹70,200

Not sure which regime to pick?

If you have significant 80C investments, pay rent, or have a home loan, the old regime often wins. If you claim few deductions, the new regime's lower rates usually come out ahead. Compare both directly with your exact numbers.

Compare Regimes →Income Tax Calculator

How Tax Saving Works in India

India's income tax system lets salaried individuals reduce their taxable income through specific government-approved investments and expenses. The key deductions fall under Chapter VI-A of the Income Tax Act — most notably Section 80C, which gives a flat ₹1.5 lakh deduction for approved investments like PPF, ELSS, life insurance premiums, and the principal repayment of home loans.

Since FY 2023-24, the new tax regime is the default. It offers lower slab rates but removes most deductions. The old regime allows deductions but has higher rates — making it worth it only if your total deductions are large enough to offset the slab difference. This guide shows you both, for every salary level.

Related Calculators

Frequently Asked Questions

Old regime or new regime — which saves more tax?

The new regime has lower slab rates but no deductions. The old regime has higher rates but allows 80C, HRA, home loan interest, and more. As a rough guide, if your total deductions exceed roughly ₹3.5-4 lakh/year (varies by income level), the old regime usually wins. Below that, the new regime is typically better. Use the Old vs New Tax Regime calculator with your exact numbers to be sure.

What is the maximum I can save under Section 80C?

Section 80C caps total deductions at ₹1.5 lakh per financial year, covering PPF, ELSS, EPF, life insurance premiums, NSC, SSY, and home loan principal repayment combined — not ₹1.5 lakh per instrument. Beyond 80C, NPS offers an additional ₹50,000 deduction under Section 80CCD(1B), independent of the 80C limit.

Is the new tax regime compulsory now?

The new regime is the default since FY 2023-24, meaning it applies automatically unless you specifically opt for the old regime while filing your return (or inform your employer at the start of the year for TDS purposes). Salaried employees can switch between regimes every year when filing their ITR.

Does HRA exemption work under the new tax regime?

No. HRA exemption, along with most other deductions like 80C and home loan interest, is not available under the new tax regime. If you pay significant rent and claim HRA, the old regime is often more beneficial — the Income Tax Calculator lets you compare both directly.