How to Save Tax for Salary Above ₹10 Lakhs

If your salary is above ₹10 lakhs, the right mix of deductions, investments and salary structuring can help you reduce your tax burden. With the updated tax rules, it’s important to first choose the regime that benefits you the most and then use the available options wisely.

Step 1: What You Need Before Planning

• Salary Breakdown – Basic pay, HRA, allowances and bonuses.
• Investment Details – EPF, PPF, ELSS, insurance and other eligible options.
• Loan & Insurance Records – Home-loan statements and health insurance premiums.
• Regime Choice – Old regime (more deductions) or new regime (simpler slabs).

Step 2: Best Ways to Save Tax Above ₹10 Lakhs

• Use Section 80C (₹1.5 lakh limit):
  Invest in PPF, ELSS, life insurance or claim home-loan principal repayment.
• Claim Health Insurance Deductions (80D):
  Premiums paid for self, family and parents reduce taxable income.
• Save More Through NPS:
  Old regime allows personal contributions + an extra ₹50,000 deduction.
  In the new regime, employer contributions still offer tax benefits.
• Get Home-Loan Interest Benefits (Section 24):
  Interest paid on your home loan helps reduce taxable income.
• Optimise Salary Structure
  Include HRA, LTA, food benefits and reimbursements to lower taxable salary.

Step 3: Additional Tips

• Compare both regimes before finalising.
  
   
• Spread your investments across the year.
  
   
• Track receipts for rent, insurance, and medical bills.
  
   
• Adjust your CTC components through HR if needed.

Conclusion

Saving tax on a 10-lakh-plus salary is simple when you combine smart investments with a tax-efficient salary structure. Use your 80C limit fully, add NPS, claim health-insurance deductions and take advantage of home-loan benefits to minimise your tax outgo.