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ArticleOnce your income crosses Rs 15 lakh you're firmly into the higher slabs, and the right structure makes a real difference to what you keep. Here's how high earners can legitimately reduce tax.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
High earners can use employer NPS, the regime comparison, home-loan and HRA stacking, and surcharge planning. Here's how to cut tax above Rs 15 lakh.
Above Rs 15 lakh the gap between regimes can be large. The new regime offers a Rs 75,000 standard deduction and moderate slabs with few deductions; the old regime taxes more but rewards big deductions. At this income the only way to know is to compute both — assumptions cost real money here.
The employer's NPS contribution is deductible in both regimes — up to 10% of salary (14% for government employees) — and survives even in the new regime. For a high earner this can be one of the largest single deductions, so ask your employer to structure part of the package through NPS.
If the old regime wins, use everything: 80C up to Rs 1,50,000, the extra Rs 50,000 NPS under 80CCD(1B), 80D health insurance, home-loan interest up to Rs 2,00,000 under Section 24(b), and HRA if you rent. Together these can shift a high earner meaningfully below the new regime.
At higher income levels a surcharge applies on top of tax, stepping up at defined income thresholds. If your income is just above a surcharge threshold, deductions or timing that bring it below the line can save disproportionately — this is specialist planning worth getting right.
For high earners, how investment income is held and realised — equity versus debt, timing of gains, harvesting losses — affects the total tax. Coordinate your salary planning with your investments rather than treating them separately.
By choosing the right regime, maximising employer NPS under 80CCD(2), stacking old-regime deductions if they win, and planning around surcharge thresholds. At this income, computing both regimes is essential.
Employer NPS under 80CCD(2) — deductible up to 10% of salary (14% for government employees) in both the old and new regimes. It's often a high earner's largest single deduction.
An additional charge on top of tax that steps up at defined income thresholds. If your income is just above a threshold, deductions that bring it below can save disproportionately — worth planning carefully.
Earning well above Rs 15 lakh? Write to the firm and we'll structure your salary, NPS and investments to cut the tax.