How to Save Tax on Salary Above ₹7 Lakh in 2026

Start with the regime decision

Above ₹7 lakh, you're past the new regime's basic rebate threshold, so this is exactly where regime choice starts to matter. Log in to the income tax e-filing portal and run both computations — old regime with your actual deductions, and new regime without them — before deciding.

If you stay in the old regime

Maximise Section 80C (₹1.5 lakh via PF, ELSS, life insurance or principal repayment on a home loan), claim HRA if you pay rent, deduct home loan interest under Section 24(b) up to ₹2 lakh, and use 80D for health insurance premiums for yourself and your parents.

The one deduction available in both regimes

Employer contribution to NPS under Section 80CCD(2) — up to 14% of basic salary for private-sector employees — is deductible under both the old and new regime. If your employer offers an NPS component in CTC restructuring, it's worth taking.

Don't over-optimise and under-file

The bigger risk at this income level isn't missing a deduction — it's misreporting one and drawing a notice. Every deduction we claim is backed by proof and reviewed by a senior CA before the return goes out.

FAQs

Should I switch regimes just to save a few thousand rupees? Usually not worth the added complexity of tracking deduction proofs — but if the gap is significant, it is.

Can I claim both HRA and home loan interest? Yes, if you rent in one city while owning a home (self-occupied or let-out) elsewhere — a common and fully legitimate combination.