💰 Tax Savings · Income-head reliefs
Salary structuring — build a tax-efficient CTC
✍️ EaseValue Advisors · Updated 17 Jul 2026 · FY 2025-26
In short
How you split your CTC changes your take-home. Routing pay into exempt allowances and reimbursements — HRA, LTA, employer-NPS, meal, fuel, phone — legally lowers the tax on the same salary (mostly old regime).
The levers inside your CTC
- HRA — a large part of rent made tax-free (Sec 10(13A)).
- LTA — domestic travel fare, twice in a 4-year block (Sec 10(5)).
- Employer NPS — 80CCD(2): up to 14% (govt) / 10% (private) of salary, deductible even in the new regime.
- Reimbursements — meal cards, fuel & driver, phone/internet, books & periodicals, uniform — exempt against actual bills.
- Retirement components — gratuity, leave encashment, PF — build exempt corpus.
- Standard deduction ₹75,000 (new regime) applies automatically.
Old vs new
Most allowances (HRA, LTA, reimbursements) work only in the old regime; standard deduction and employer-NPS 80CCD(2) work in both. Model both regimes before locking your structure.
Do it right
Keep rent receipts, travel tickets and reimbursement bills; declare your regime to your employer early so TDS isn't over-deducted.
The law behind it
Section 17 Section 10(13A) Section 10(5) Section 80CCD(2) Section 16(ia)
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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