New Tax Regime? 5 Ways to Cut Your ITR Bill
Most people think the new tax regime means zero tax-saving options. Wrong. There are still 5 legitimate ways to lower your tax bill when filing ITR for AY 2026-27 — and most salaried Indians are missing them.
₹75,000 standard deduction = roughly 6 months of your morning chai budget saved from tax
You can still cut your tax bill even under the new regime
Key Takeaways
Claim the full ₹75,000 standard deduction automatically — confirm it is reflected in your Form 16 before filing ITR.
Ask your employer to restructure your salary to include NPS contribution under Section 80CCD(2) — employer's NPS contribution up to 14% of basic salary is fully exempt even in the new regime.
Check if you received any gratuity, VRS amount, or leave encashment — these carry specific exemptions that apply regardless of the tax regime you chose.
Most people think the new tax regime means zero tax-saving options. Wrong. There are still 5 legitimate ways to lower your tax bill when filing ITR for AY 2026-27 — and most salaried Indians are missing them.
Here's what happened: The new tax regime for AY 2026-27 has lower slab rates but removes most traditional deductions like 80C, 80D, and HRA.. Budget 2024 raised the standard deduction under the new regime from ₹50,000 to ₹75,000 for salaried employees.. Despite fewer deductions, specific allowances and exemptions still apply under the new regime, reducing taxable income legally..
What you should do: Claim the full ₹75,000 standard deduction automatically — confirm it is reflected in your Form 16 before filing ITR.. Ask your employer to restructure your salary to include NPS contribution under Section 80CCD(2) — employer's NPS contribution up to 14% of basic salary is fully exempt even in the new regime.. Check if you received any gratuity, VRS amount, or leave encashment — these carry specific exemptions that apply regardless of the tax regime you chose..
Under the new regime, family pension recipients get a deduction of ₹15,000 or one-third of pension — whichever is lower. Most pensioners filing ITR miss this completely.
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- [1]“Chose the new tax regime? Here are 5 ways to reduce your tax while filing ITR for AY 2026-27” mint - money · 11 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.