 {"id":6108,"date":"2025-07-25T10:38:08","date_gmt":"2025-07-25T05:08:08","guid":{"rendered":"https:\/\/1finance.co.in\/magazine\/?post_type=blog&#038;p=6108"},"modified":"2025-09-15T12:22:20","modified_gmt":"2025-09-15T06:52:20","slug":"how-to-save-tax-for-salary-above-20-lakh-for-fy-2025-26","status":"publish","type":"blog","link":"https:\/\/1finance.co.in\/1f-dashboard\/blog\/how-to-save-tax-for-salary-above-20-lakh-for-fy-2025-26\/","title":{"rendered":"How to save tax for salary above \u20b920 lakh for FY 2025-26"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Crossing the \u20b920 lakh annual salary mark is a proud milestone. But it also brings with it a new set of tax responsibilities. In this blog, we will walk you through a simplified guide to saving tax efficiently in Financial Year 2025-26. Whether you\u2019re trying to decide between the old and new tax regimes, or looking to make the most of deductions, this blog is crafted to help high earners like you make smart financial choices.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">New vs. old tax regime: Which one works best for those earning more than \u20b920 lakh?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When your income crosses the \u20b920-lakh mark, you enter one of the highest tax brackets in India. Under the old tax regime, any income exceeding \u20b910 lakh is taxed at 30%, plus a 4% health and education cess. In contrast, the new tax regime offers lower tax rates but restricts the deductions you can claim. This makes tax planning not just beneficial but necessary. It&#8217;s important to understand how much of your income will be taxed and to identify the options available for efficiently reducing your tax burden.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A detailed comparison between the old tax regime and the new tax regime, based on your actual deductions, is essential for making an informed choice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The choice between the old and new tax regimes depends on your <a href=\"https:\/\/1finance.co.in\/blog\/5-must-use-financial-calculators-for-personal-finance-in-2025\/\">personal finances<\/a> and the deductions you are eligible to claim. If your deductions such as home loan interest, contributions to provident fund, insurance premiums, and investment schemes add up to over \u20b97 to \u20b98 lakhs annually, then sticking to the old regime may result in greater tax savings. On the other hand, if your <a href=\"https:\/\/1finance.co.in\/blog\/why-financial-planning-is-more-important-than-ever-in-2025\/\">financial planning<\/a> is minimal or you prefer simplicity, the new regime might be more suitable. It&#8217;s best to calculate your tax liability under both regimes before choosing.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Will you get standard deduction, Section 87A benefit if you earn above \u20b920 lakh?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Under both tax regimes, <a href=\"https:\/\/1finance.co.in\/blog\/how-to-file-income-tax-return-for-salaried-employees-a-step-by-step-guide\/\" target=\"_blank\" rel=\"noopener\">salaried individuals<\/a> are entitled to a standard deduction, \u20b950,000 under the old regime whereas \u20b975,000 under the new regime. However, at an income level above \u20b912 lakhs, you are not eligible for the Section 87A rebate, which is meant to provide relief to low-income taxpayers. This means your entire taxable income is subject to tax as per the applicable slabs, making tax planning even more important.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How to maximise Section 80C benefits when you earn more than \u20b920 lakh<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Section 80C remains a cornerstone of tax-saving for high-income earners. You can claim up to \u20b91.5 lakhs by investing in eligible instruments such as ELSS (Equity Linked Saving Schemes), PPF (Public Provident Fund), NSC (National Savings Certificates), EPF (Employees\u2019 Provident Fund), and life insurance premiums. Home loan principal repayments also qualify under this section. Even lesser-known options like Sukanya Samriddhi Yojana for daughters and contributions to the Agniveer Corpus Fund are valid. These deductions are especially valuable under the old regime.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How to claim Section 80D deductions for an income of more than \u20b920 lakh<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Medical insurance premiums provide additional avenues for tax savings under Section 80D. You can claim up to \u20b925,000 for insurance premiums paid for yourself, your spouse, and children. If you also pay for health insurance for senior citizen parents, you can claim an additional \u20b950,000. In some cases, preventive health checkups allow an additional claim of \u20b95,000 within the overall limit. These deductions not only lower your tax liability but also ensure financial protection for your family.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What NPS tax benefits can you claim if you earn more than \u20b920 lakh?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The National Pension Scheme (NPS) is an excellent tool for both tax-saving and retirement planning. You can claim an extra deduction of \u20b950,000 under Section 80CCD(1B), over and above the \u20b91.5 lakh limit under 80C. This provision is especially beneficial for those in the high-income bracket and is applicable only under the old regime. Moreover, if your employer contributes to your NPS account, that contribution, up to 10% of your basic salary under the old regime (14% of basic salary under the new regime), is fully deductible under Section 80CCD(2).<\/span><\/p>\n<h2>How to restructure your salary to get more tax benefits<\/h2>\n<p><span style=\"font-weight: 400;\">Strategically structuring your salary components can significantly enhance your take-home pay. Including tax-exempt allowances like House Rent Allowance (HRA), Leave Travel Allowance (LTA), meal coupons, fuel reimbursements, and mobile or internet reimbursements can significantly reduce your taxable income. For instance, if you live in a rented house and maintain proper rent receipts, your HRA can be partially or fully tax-exempt. A well-structured salary not only saves taxes but also improves overall financial well-being.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Owning property or real estate? How to claim home loan deductions smartly for income of over \u20b920 lakh<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Investing in real estate comes with substantial tax benefits. Under Section 80C, you can claim the principal repayment of a home loan. Additionally, interest payments on the home loan are deductible up to \u20b92 lakhs under Section 24(b). First-time home buyers may also be eligible for an additional deduction of \u20b91.5 lakhs under Section 80EEA, provided specific criteria are met. These deductions can collectively result in significant tax savings for individuals with home loans.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Capital gains and income from other sources at \u20b920 lakh+ salary<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">High-income individuals often have additional sources of income, such as capital gains, dividends, or rental income. <a href=\"https:\/\/1finance.co.in\/blog\/capital-gains-tax-stcg-ltcg-2024-25\/\">Long-term capital gains<\/a> on listed equity shares exceeding \u20b91.25 lakh are taxed at 12.5%, while short-term gains are taxed at 20%. However, reinvestment in 54EC Bonds can exempt some capital gains from tax. It is crucial to declare all such incomes and plan taxes<\/span> <span style=\"font-weight: 400;\">accordingly to avoid penalties.<\/span><\/p>\n<h2>Can education loans still offer tax benefits at \u20b920 lakh income?<\/h2>\n<p><span style=\"font-weight: 400;\">Yes, the interest paid on education loans for higher studies qualifies for a deduction under Section 80E. This applies to loans taken for self, spouse, or children and is available for a maximum of 8 years. The good part is that there\u2019s no upper limit on the amount or any restriction based on your income level. This benefit is particularly valuable for those funding expensive higher education like MBAs or international degrees.<\/span><\/p>\n<h2 style=\"text-align: left;\">Maximise lesser-known deductions and exemptions for \u20b920 lakh+ salary<\/h2>\n<p><span style=\"font-weight: 400;\">Many taxpayers overlook deductions that can collectively make a big difference. Contributions to approved charities under Section 80G are deductible. Investments in the Agniveer Corpus Fund qualify under Section 80CCH. Additionally, certain employer-provided benefits like reimbursements for mobile, internet, fuel, and books can be non-taxable if claimed properly. Fully utilizing these options ensures that no money is left on the table.<\/span><\/p>\n<h2 style=\"text-align: left;\">Old vs. new tax regime: Which one will save more tax if you earn more than \u20b920 lakh?<\/h2>\n<p><span style=\"font-weight: 400;\">To truly understand the impact of choosing the right tax regime, let\u2019s explore four real-world scenarios. Each individual earns \u20b920 lakhs or more and represents a unique tax planning profile from aggressive savers to those with no deductions at all. These examples are designed to reflect practical situations many professionals face, such as home loan EMIs, elderly parent healthcare costs, or simply not investing for deductions.<\/span><\/p>\n<p><b>1. Dipti (\u20b920 lakh salary)<\/b><span style=\"font-weight: 400;\"> \u2013 Maxes out on deductions, uses NPS, claims HRA, contributed to Agniveer Corpus Fund.<\/span><\/p>\n<div style=\"width: 100%; overflow-x: scroll; white-space: nowrap; padding-bottom: 10px; scrollbar-color: black lightgray; scrollbar-width: thin;\">\n<table style=\"min-width: 100%; border-collapse: collapse; font-size: 14px; border: 1px solid black;\">\n<tbody>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\"><strong>Particulars<\/strong><\/td>\n<td style=\"border: 1px solid black;\"><strong>Old Regime<\/strong><\/td>\n<td style=\"border: 1px solid black;\"><strong>New Regime<\/strong><\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Gross Salary<\/td>\n<td style=\"border: 1px solid black;\">\u20b920,00,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b920,00,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">HRA<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-89,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Standard Deduction<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-50,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-75,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Deduction under Chapter VI A<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80C<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-1,50,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80CCD(1B)<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-50,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80CCH<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-2,00,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-2,00,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Total Taxable Income<\/td>\n<td style=\"border: 1px solid black;\">\u20b914,61,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b917,25,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Net Tax Payable<\/td>\n<td style=\"border: 1px solid black;\">\u20b92,60,832<\/td>\n<td style=\"border: 1px solid black;\">\u20b91,50,800<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Effective Tax Rate<\/td>\n<td style=\"border: 1px solid black;\">13.0%<\/td>\n<td style=\"border: 1px solid black;\">7.5%<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Savings in Tax<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<td style=\"border: 1px solid black;\">\u20b91,10,032<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Net Cash in Hand<\/td>\n<td style=\"border: 1px solid black;\">\u20b912,00,168<\/td>\n<td style=\"border: 1px solid black;\">\u20b915,74,200<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><b>2. Parag (\u20b922 lakh salary)<\/b><span style=\"font-weight: 400;\"> \u2013 Similar profile to Dipti but invests more in NPS instead of contributing to Agniveer Corpus Fund.<\/span><\/p>\n<div style=\"width: 100%; overflow-x: scroll; white-space: nowrap; padding-bottom: 10px; scrollbar-color: black lightgray; scrollbar-width: thin;\">\n<table style=\"min-width: 100%; border-collapse: collapse; font-size: 14px; border: 1px solid black;\">\n<tbody>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Particulars<\/td>\n<td style=\"border: 1px solid black;\"><strong>Parag (Old Regime)<\/strong><\/td>\n<td style=\"border: 1px solid black;\"><strong>Parag (New Regime)<\/strong><\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Gross Salary<\/td>\n<td style=\"border: 1px solid black;\">\u20b922,00,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b922,00,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">HRA<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-69,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Standard Deduction<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-50,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-75,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Deduction under Chapter VI A<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80C<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-1,50,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80CCD(1B)<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-50,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80CCD(2)<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-1,95,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-2,73,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Total Taxable Income<\/td>\n<td style=\"border: 1px solid black;\">\u20b916,86,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b918,52,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Net Tax Payable<\/td>\n<td style=\"border: 1px solid black;\">\u20b93,12,312<\/td>\n<td style=\"border: 1px solid black;\">\u20b91,77,216<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Effective Tax Rate<\/td>\n<td style=\"border: 1px solid black;\">14.2%<\/td>\n<td style=\"border: 1px solid black;\">8.1%<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Savings in Tax<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<td style=\"border: 1px solid black;\">\u20b91,35,096<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Net Cash in Hand<\/td>\n<td style=\"border: 1px solid black;\">\u20b913,73,688<\/td>\n<td style=\"border: 1px solid black;\">\u20b916,74,784<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><strong>3. Dhwani (\u20b925 lakh salary)<\/strong> \u2013 Claims home loan interest under Section 24(b) along with medical premium and other deductions.<\/p>\n<div style=\"width: 100%; overflow-x: scroll; white-space: nowrap; padding-bottom: 10px; scrollbar-color: black lightgray; scrollbar-width: thin;\">\n<table style=\"min-width: 100%; border-collapse: collapse; font-size: 14px; border: 1px solid black;\">\n<tbody>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\"><strong>Particulars<\/strong><\/td>\n<td style=\"border: 1px solid black;\"><strong>Old Regime<\/strong><\/td>\n<td style=\"border: 1px solid black;\"><strong>New Regime<\/strong><\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Gross Salary<\/td>\n<td style=\"border: 1px solid black;\">\u20b925,00,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b925,00,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">HRA<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-39,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Standard Deduction<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-50,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-75,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Deduction under Chapter VI A<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80C<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-1,50,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80CCD(1B)<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-50,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80CCD(2)<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-2,25,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-3,15,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">&#8211; Section 80D<\/td>\n<td style=\"border: 1px solid black;\">\u20b9-60,000<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Total Taxable Income<\/td>\n<td style=\"border: 1px solid black;\">\u20b919,26,000<\/td>\n<td style=\"border: 1px solid black;\">\u20b921,10,000<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Net Tax Payable<\/td>\n<td style=\"border: 1px solid black;\">\u20b93,43,512<\/td>\n<td style=\"border: 1px solid black;\">\u20b92,36,600<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Effective Tax Rate<\/td>\n<td style=\"border: 1px solid black;\">13.7%<\/td>\n<td style=\"border: 1px solid black;\">9.5%<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Savings in Tax<\/td>\n<td style=\"border: 1px solid black;\">&#8211;<\/td>\n<td style=\"border: 1px solid black;\">\u20b91,06,912<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Net Cash in Hand<\/td>\n<td style=\"border: 1px solid black;\">\u20b915,82,488<\/td>\n<td style=\"border: 1px solid black;\">\u20b918,73,400<\/td>\n<\/tr>\n<tr style=\"border: 1px solid black;\">\n<td style=\"border: 1px solid black;\">Monthly Cash in Hand<\/td>\n<td style=\"border: 1px solid black;\">\u20b992,406<\/td>\n<td style=\"border: 1px solid black;\">\u20b91,19,563<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Dhwani and Parag benefit significantly due to higher deductions and home loan interest for self-occupied property, showing the power of planning under the old regime. These examples emphasise how leveraging exemptions like HRA, NPS, insurance, and home loan interest can offer immense savings.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Getting a salary of more than \u20b920 lakh? CTC vs in-hand salary &amp; tax implications<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A \u20b920 lakh CTC doesn&#8217;t translate to \u20b920 lakhs in hand. Typically, your monthly take-home salary could range between \u20b91.15 to \u20b91.6 lakhs, depending on the structure and the <a href=\"https:\/\/1finance.co.in\/calculator\/old-vs-new\">tax regime<\/a> chosen. Components like Provident Fund, gratuity, performance bonuses, and tax deductions reduce the actual in-hand salary. A smart tax regime choice and proper use of deductions can significantly boost your monthly net income.<\/span><\/p>\n<h2>Mistakes to avoid while planning taxes at \u20b920 lakh+ salary<span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Many high earners make the mistake of not evaluating both tax regimes before filing. Others miss out on investment deadlines, fail to submit necessary proofs, or overlook benefits like employer NPS contributions. Taking a proactive approach, starting early in the financial year, maintaining proper documentation, and <a href=\"http:\/\/1finance.co.in\/itr-filing\">consulting a tax professional<\/a> can help avoid common pitfalls and maximise savings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A salary above \u20b920 lakhs opens up a wide range of tax planning options. With a strategic approach and smart investment decisions, you can retain more of what you earn. Whether you prefer the simplicity of the new regime or the flexibility of deductions under the old one, always tailor your plan to your financial goals and consult a tax professional for personalised advice.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A salary above \u20b920 lakhs opens up a wide range of tax planning options.<\/p>\n","protected":false},"featured_media":6192,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_updated_date":""},"blog-category":[391],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.11 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to save tax for salary above \u20b920 lakh for FY 2025-26<\/title>\n<meta name=\"description\" content=\"When your income crosses the \u20b920-lakh mark, you enter one of the highest tax brackets in India. Under the old tax regime, any income exceeding \u20b910 lakh is taxed at 30%, plus a 4% health and education cess.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/1finance.co.in\/blog\/how-to-save-tax-for-salary-above-20-lakh-for-fy-2025-26\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to save tax for salary above \u20b920 lakh for FY 2025-26\" \/>\n<meta property=\"og:description\" content=\"When your income crosses the \u20b920-lakh mark, you enter one of the highest tax brackets in India. 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