New Tax Regime 2026: 7 Ways to Cut Your ITR Bill
The new tax regime is now the default for salaried employees in India. But most people don't know the deductions and tricks still available inside it that can legally bring your tax bill down to zero.
A salaried person at ₹12L income saves more tax in the new regime than 8 months of chai-and-lunch office bills.
Your tax bill hits zero if your income stays under ₹12 lakh
Key Takeaways
Calculate your taxable income after the ₹75,000 standard deduction and check if you fall under ₹12 lakh — if yes, your tax is zero.
Compare both regimes using a free online tax calculator before filing; switching is allowed once per year for salaried individuals.
Declare NPS employer contribution (Section 80CCD(2)) in your ITR — this deduction is available even inside the new regime and most employees miss it.
The new tax regime is now the default for salaried employees in India. But most people don't know the deductions and tricks still available inside it that can legally bring your tax bill down to zero.
Here's what happened: The new tax regime became the default from FY2024-25 onwards — you must actively opt out if you want the old regime.. Income up to ₹12 lakh is effectively tax-free under the new regime thanks to Section 87A rebate plus standard deduction.. ITR filing for FY2025-26 opens in 2026 — millions of salaried employees will need to choose their regime carefully before filing..
What you should do: Calculate your taxable income after the ₹75,000 standard deduction and check if you fall under ₹12 lakh — if yes, your tax is zero.. Compare both regimes using a free online tax calculator before filing; switching is allowed once per year for salaried individuals.. Declare NPS employer contribution (Section 80CCD(2)) in your ITR — this deduction is available even inside the new regime and most employees miss it..
Employer NPS contribution up to 14% of basic salary is fully deductible even in the new tax regime — ask your HR to restructure your CTC to include this and legally cut your taxable income by ₹50,000–₹1 lakh or more.
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- [1]“New tax regime: 7 smart ways salaried employees can reduce their tax while filing ITR in 2026” Wealth-Economic Times · 10 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.