To avoid or minimize tax on a ₹10 lakh salary, leverage deductions under the old regime, such as §80C (₹1.5 lakh), §80D (health insurance), §24(b) (home loan interest), and §80CCD(1B) (NPS). In the new regime, maximize the ₹50,000 standard deduction and employer NPS contributions. Combined, these can reduce tax liability to zero.
Steps to Save Tax for Salary above 10 Lakhs
Zero Tax up to ₹12 Lakh (₹12.75 Lakh for Salaried) Under the new tax regime, income up to ₹12,00,000 attracts no income tax because of a ₹60,000 rebate – the tax on this portion is waived off.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
How can I save 100% income tax in India?
Common tax return mistakes that can cost taxpayers
In her 2025 Budget speech, Finance Minister Nirmala Sitharaman shared big news. Under the new regime, if you earn up to Rs 12 lakh, you will not have to pay any income tax. Salaried taxpayers get an extra benefit too. The standard deduction, which was Rs 50,000 before, has now gone up to Rs 75,000 for the new regime.
One easy way to pay no income tax is to have little or no taxable income. For tax year 2025, taxpayers receive a standard deduction of $15,750 (singles or married persons filing separately) or $31,500 (marrieds filing jointly). For heads of households, the standard deduction is $23,625 for tax year 2025.
Up to Rs 4 lakh: Nil tax. Rs 4,00,001- Rs 8,00,000 : 5% Rs 8,00,001 lakh - Rs 12,00,000 : 10% Rs 12,00,001 lakh - Rs 16,00,000: 15%
The highest paying jobs in India in 2025 include CEO, Doctor, AI Specialist, Data Scientist, Product Manager, and Investment Banker, with salaries ranging from ₹12 LPA to ₹1 Cr+.
A good salary in India typically depends on the location, industry, and lifestyle. Generally, a salary of INR 50,000 to INR 1,00,000 per month is considered good, especially in metro cities. However, for smaller cities or towns, a salary of INR 30,000 to INR 50,000 could be sufficient for a comfortable lifestyle.
Examples of income that are not taxable in India include agricultural income, gifts and inheritances, interest on EPF and PPF, scholarships and awards, life insurance proceeds, leave encashment, gratuity, Long-Term Capital Gains (LTCG), and interest on tax-free bonds.
You may be able to reduce your taxable income by maximizing contributions to retirement plans and health savings accounts. Tax-loss harvesting, asset location, and charitable giving are other tax strategies to consider to potentially lower your tax bill.
According to government reports, while over 7 crore people file tax returns, only a fraction of them actually pay taxes because many fall below the taxable income threshold or use deductions to reduce liability.
Here's an overview of each strategy and how it might reduce taxable income and help you avoid moving into a higher tax bracket.
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