How to Save Tax for Salary Above 10 Lakhs in India

With the new tax regime under the Budget 2025, there have been several new changes in the financial planning for taxpayers. The new tax regime features 4 lakh slabs with newly introduced tax percentages. If you are an earning individual, understanding the new and old tax regimes is crucial for reducing your tax burden. Especially for people earning above 10 lakhs in salary in India, the taxation rates start to increase. You need to calculate some smart routes to reduce the tax. A good salary backed by an effective financial plan is the way to financial independence in the future. 

Are you wondering how to save tax for salary above 10 lakhs? In this guide, we have researched some smart and legal ways you can reduce your tax rates and enjoy savings during this financial year. 

Tax Slabs Under The New and Old Tax Regimes

Before we dive into the smart tactics, it is important to refer to the tax slabs and percentages issued by the government. 

Tax Slabs Under the Old Regime

Deductions and Exemptions 

Tax Slabs Under the New Regimes

Exemptions and Deductions 

How to Save Tax For Salary Above 10 Lakhs Salaries?

Whether you are choosing the old or new tax regime, smart planning and techniques are your best friends. Here are some key tips and legal hacks on how to save tax on salary:

Claim Standard Deduction

One of the most popular and simple tools to reduce your tax burden is claiming the standard deduction offered. 

• You can avail it against salary income with minimal conditions assigned. 
• The old tax regime offers ₹50,000 deductions while the new regime comes with increased ₹75,000 deductions. 

Choose The Correct Regime

The new tax regime under Budget 2025 comes with much more streamlined and simple tax slabs. However, unlike the old regime, it features fewer opportunities for deductions and exemptions. This means:

• If you are eligible for various exemptions, the old regime may bring in lower tax cuts and better overall finances. 
• However, the new regime offers a faster process with a better standard deduction of ₹75,000.

Claim Exemption on Gifts Received 

Gifts received in cash or any other kind are not taxable under Section 56 in the Income Tax Act. However, the value of the gift must be up to ₹ 50,000. If the amount of the gift received exceeds the authorised limit of ₹50,000, then the entire amount is taxable. This smart tax-saving option for 10-lakh salary in India is available in both old and new regimes. You can learn more about this through My Mudra’s blog. 

Claim Deductions on Agniveer Corpus Fund

Under Section 80CCH(2), the contributions made to the Agniveer Corpus Fund are available for tax deductions. Only individuals who are enrolled on the Agnipath Scheme of the Central Government are eligible for this deduction. Plus, there is no maximum limit of deduction; you can deduct the entire amount contributed to the fund. 

Examples of Tax Calculation for ₹ 10 Lakhs and ₹ 15 Lakhs Salary 

Example 1: 10 Lakhs Salary in India

Example 2: ₹ 15 Lakhs Salary in India

Conclusion 

With some tips and legal planning, you can enjoy lower tax cuts for your salary above 10 lakhs. Choosing the old or new tax regime is crucial to finding the ideal set-up for your deductions and tax cuts. Out of several tax-saving ways mentioned above, the home loan and education loans repayment interest is a key way to reduce your taxation. And, My Mudra offers a fast and easy loan application process. You can access over 90 reputed banks and NBFCs at your fingertips with an all-online process. 

So, apply for the loan on My Mudra today and take your first step towards financial freedom. 

Also Read: How to Save Tax on Salary Income of 12 Lakhs in India