Last year I paid ₹6.8 L tax on a ₹48 L CTC. This year, with the same income, I paid only ₹4.5 L.
What changed:
- Salary restructuring: My HR added food coupons, phone reimbursement and LTA properly. That alone saved about ₹80 k. Most people never ask HR for these and just stick with the default structure.
- NPS employer contribution: Many don't know it's completely outside the 80C limit even under the new regime. That gave me another ₹45 k saving.
- Timing of stock sales: I had RSUs vesting and sold them strategically to stay within the long‑term capital‑gain slab instead of the regular tax slab. That saved roughly ₹60 k.
- Correct regime selection: I did the actual calculation based on my deductions and switched from the new to the old regime, which saved the remaining amount.
None of this is complicated or illegal – just proper planning at the start of the year instead of panic‑buying ELSS in March.
The sad part is my CA never mentioned any of this. I learned it from a proper tax‑advisory firm rather than a filing agent.
Happy to answer any questions if you need specifics for your case.
For RSUs, perquisite tax applies – i.e., the normal slab on the difference between the exercise price and the FMV. So the LTCG exemption won't apply.
Which tax regime did you opt for in each of the two years?
The old regime usually results in higher tax unless you claim all possible deductions, not just HRA or MF.
Also, NPS isn't a full tax saver because of the withdrawal rules.
I'm skeptical about the numbers – with a ₹45 LPA salary, the tax can't be that low; it's typically around ₹10 L.
If you claim 80G, you must have an actual donation, otherwise it can cause trouble.
For HRA, you need to show rent above ₹1 L with PAN; the 50 % of basic rule won't help if rent is below ₹1 L.
Also worth noting, if you have RSUs or capital gains, don't forget advance tax. Missing the quarterly instalments can attract interest.
Sounds fake or delusional.
Please don't take the risk and end up with a notice.
Please, NPS is a poor scheme.
A proper tax‑advisory firm is essentially a practising CA.
Filing agents are the ones who file returns for under a thousand rupees.
Pure BS – the new regime doesn't save more than the old regime even after adding HRA, home‑loan interest and other deductions if you earn above ₹30 L.
Hmm, a ₹48 LPA salary and you still find the old regime better? How exactly? What does your Chap VIA look like? Unless you're investing at least ₹8‑8.5 L, you won't break even with the new regime (which can easily cross ₹8‑9 L in tax).
The math just doesn't add up.