Can NPS Help You Save Tax in the New Regime? What Salaried Employees Must Know
If you a re a sa lar i ed emp l oyee u nder the n ew tax r eg ime, you m a y hav e alre ad y n o ticed that mo st t r aditional t ax-sav i ng av enu es hav e n arr owe d. I nve stment s un d er Se c tion 80C, HRA ben e fits an d s ev e r al co mm o n d educ t ion s n o l o nger off er the sam e reli ef. How ever, one important — and of t en over loo k e d — rout e s till hel p s r edu c e taxable in come: Employ er con tribut i ons t o NPS . The new tax regime introduced by the Income Tax Department was designed to simplify taxation by offering lower slab rates in exchange for removing most exemptions and deductions. As a result, salaried employees now have fewer tools available for active tax planning. This is where employer contributions to NPS stand out. Ri...