How to save tax for a salary above Rs 50 Lakhs

  • For Rs. 50 Lakhs, the highest tax slab applicable – must examine all options to save tax outgo.

  • New regime offers a standard deduction of Rs. 75,000/-.

     For those who have Home Loan Interest, Health Insurance Premium, tax-saving investments and other deductions amounting to                       Rs. 4.82 Lakhs, the old regime is beneficial.

   • Old regime also offers exemptions like House Rent Allowance, Leave Travel Allowance, Hostel Allowance, Children Education                              Allowance, Food coupons etc.

Tax- Saving example: Calculation for 50 Lakh Salary (Old VS New regime)
Particulars	Old Tax Regime (FY 2025-26)	New Tax Regime (FY 2025-26)
Gross Salary	50,00,000	50,00,000
Less:
HRA Rent Allowance	4,80,000	NA
Leave Travel allowance	75,000	NA
Children Education and Hostel Allowance	9,600	NA
Professional Tax	2,400	NA
Interest on Housing Loan	2,00,000	NA
Communication Expenses	42,000	NA
Professional Development	30,000	NA
Vehicle maintenance	32,400	NA
Sodexo	24,000	NA
Income from salary	41,04,600	50,00,000
Standard Deduction	50,000	75,000
Less: VI A Deductions
80C	1,50,000	NA
80D	50,000	NA
80DD	50,000	NA
80CCD(1) – NPS	50,000	NA
80CCD(2) – NPS	2,49,996	3,50,004
80E	2,00,000	NA
80G	3,00,000	NA
Total Taxable income	30,04,604	45,74,996
Net Income tax on a 50 Lakh rupee Salary	7,13,881	9,52,499
Total Tax( Including health and education cess@4%)	7,42,436	9,90,599