How to save tax in new tax regime 2026-27?

MA Posted by: Mrs Manisha M Akerkar
• 22 July, 2026
3 Reply

I'm a salaried employee working in India, and this will be my first time filing my Income Tax Return under the new tax regime for AY 2026–27. In previous years, I used the old regime and claimed deductions under Section 80C, health insurance under Section 80D, and HRA. Since the new tax regime has become the default option and many deductions are no longer available, I'm trying to understand what tax-saving opportunities still exist.

I've read that the standard deduction is still available, and there are some benefits related to the employer's National Pension System (NPS) contribution. I've also heard about the Section 87A rebate and marginal relief, but I'm not entirely sure how they work or who qualifies.

My annual salary is around ₹14 lakh, and I don't have any business income. Before I file my return, I'd like to know whether there are any legitimate ways to reduce my tax liability under the new regime or if tax planning is mostly limited compared to the old regime.

Has anyone here recently calculated their taxes for AY 2026–27 under the new regime? What tax-saving options actually worked for you? Any practical experiences or suggestions would be really helpful.

I understand tax rules can change, so I'll verify everything before filing. I'm mainly looking to learn from others who have already gone through the process.

Tags : new tax regime 2026-27

  • Ramesh Babu Thondepu 27 July, 2026

    In my case, tax planning under the new regime is more about salary structure than investments.

    I asked my employer whether they could increase their NPS contribution instead of giving the entire amount as taxable salary. That reduced my taxable income without relying on deductions that aren't available anymore.

    Another tip is not to assume the new regime is automatically better. If you're eligible to choose between the two regimes, compare both every year because your salary, deductions, and financial situation can change. Requirements and tax rules may also be updated in future Budgets.

  • Mukul 25 July, 2026

    I compared both tax regimes before filing. Since I had very little investment under Section 80C and no home loan, the new regime worked out better for me.

    A colleague explained the new Section 87A rebate and marginal relief provisions. They're particularly useful for people whose taxable income is close to the specified threshold, so it's worth calculating your taxable income carefully before assuming you'll owe tax.

    I used the official income tax calculator to compare both regimes before making my decision, and that made the choice much easier.

  • Pragya Venkatesh 22 July, 2026

    I switched to the new tax regime this year because my deductions under the old regime weren't very high. The biggest benefit I received was the ₹75,000 standard deduction, which is still available for salaried employees. My employer also contributes to my NPS account, and that contribution continued to be tax-efficient under Section 80CCD(2).

    One thing I realized is that investing in PPF or ELSS no longer reduces taxable income under the new regime. I still invest in them for long-term savings, but not for tax-saving purposes anymore.

    If your employer offers salary restructuring with eligible reimbursements or NPS contributions, it's worth discussing with HR before the financial year ends.

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