Salary Tax Optimiser
Most calculators tell you what you owe. This one tells you how to owe less. Enter your CTC and rent, and it finds the tax-optimal salary structure — the right HRA, 80C, NPS and employer-NPS mix — compares the Old and New regime, and shows exactly how much tax each lever saves.
How the optimiser works
The tool builds your salary from your CTC (keeping employer PF and gratuity aside), then computes your tax under both regimes with every legal deduction applied at its best:
- HRA exemption — the least of actual HRA, rent minus 10% of Basic, or 50%/40% of Basic (Old regime only).
- Standard deduction — ₹50,000 (Old) or ₹75,000 (New).
- Section 80C — up to ₹1.5 lakh, and 80CCD(1B) — an extra ₹50,000 in NPS (Old regime).
- Section 80CCD(2) — employer’s NPS contribution, deductible in both regimes (up to 14% of Basic in the New regime, 10% in the Old).
It then recommends the regime and structure with the lowest tax, and lists each lever’s rupee saving so you know what actually moves the needle.
Worked example
On a CTC of ₹15,00,000 with ₹25,000 metro rent: claiming HRA, full ₹1.5L 80C and ₹50k NPS, the Old regime tax is about ₹80,000. But routing 14% of Basic to employer NPS under 80CCD(2) drops the New regime taxable income below ₹12 lakh — making the tax effectively nil after the rebate. The optimiser flags this automatically and shows the take-home for each path.
Good to know
Basic % is a trade-off
A higher Basic lifts HRA and NPS room (less tax) but also raises PF and gratuity (less monthly cash). The optimiser uses 50%, the new wage-code norm.
NPS lock-in
NPS gives big deductions but is locked until age 60, with only partial early withdrawal. Weigh the tax saving against the liquidity you give up.
Surcharge not included
For simplicity the tool ignores surcharge (applies above ₹50 lakh income). High earners should add it separately.
Related tools
See our Salary Calculator, HRA Calculator and NPS Guide.
Frequently asked questions
How can I structure my salary to pay less tax?
Keep Basic around 50% of CTC to maximise HRA and NPS room, claim full 80C (₹1.5 lakh) and the extra ₹50,000 under 80CCD(1B), and ask your employer to contribute to NPS under 80CCD(2), which is deductible even in the New regime. This tool computes the optimal mix for your CTC.
Is employer NPS (80CCD(2)) allowed in the new tax regime?
Yes. Section 80CCD(2) for the employer’s NPS contribution is one of the few deductions allowed under the New regime, up to 14% of your Basic salary for private-sector employees.
Which is better, the Old or New regime?
It depends on your deductions. With high HRA, 80C and NPS, the Old regime often wins; with few deductions, the New regime usually does. This optimiser computes both for your numbers and recommends the lower one.
Does a higher Basic salary save tax?
It can — a higher Basic increases your HRA exemption and NPS limits — but it also raises EPF and gratuity, reducing monthly take-home. The optimiser balances this at around 50% of CTC.
What deductions are not allowed in the new regime?
HRA, 80C, 80CCD(1B), 80D and most other deductions are not allowed under the New regime. Only the standard deduction and employer NPS under 80CCD(2) apply, which is why salary structuring matters.
Is this tax optimiser free?
Yes, it is completely free, with no sign-up. It is an estimate for planning; confirm your final structure with your employer or a tax professional.
Disclaimer: This tool is for general information and educational purposes only and is not tax advice. It uses FY 2025-26 slabs, ignores surcharge and assumes standard EPF/gratuity rates; your payslip and eligibility may differ. Verify with your employer or a qualified professional before restructuring your salary. © ClearTax Advisors.