New Tax Regime: 3 Ways to Cut Your ₹60K Tax Bill

Many people think the new tax regime offers zero deductions. Not true. There are still 3 smart, legal ways to reduce your taxable income before you file your ITR for FY 2025-26.

Here's what happened: The new tax regime is now the default for all salaried taxpayers, with revised slabs making income up to ₹12 lakh effectively tax-free from FY 2025-26.. Most classic deductions like 80C, 80D, and HRA are disallowed under the new regime, but several exemptions still legally apply and are widely overlooked.. The standard deduction of ₹75,000 for salaried employees and NPS employer contribution deduction under Section 80CCD(2) remain fully available in the new regime..

What you should do: Ask your employer to route a portion of your CTC into NPS Tier-1 as an employer contribution — this reduces your taxable income under Section 80CCD(2) with zero lock-in penalty on your take-home.. Claim the ₹75,000 standard deduction if you are salaried — ensure your Form 16 reflects this correctly before you file your ITR, as some employers still under-report it.. Check if your employer offers an Agniveer Corpus Fund or notified Leave Travel Allowance reimbursement — these are tax-free even under the new regime if structured correctly in your salary slip..

Your employer's NPS contribution up to 14% of basic salary (for central govt employees) or 10% (private sector) is deductible under 80CCD(2) in the new regime — most salaried people never activate this and leave thousands on the table.