Tax savings tips: NPS, new tax regime can save nearly Rs 1 lakh tax for this Hyderabad professional

Big tax savings are possible if his company offers Kumar the NPS benefit. Under Section 80CCD(2), up to 14% of the employee’s basic salary put in the pension scheme is tax-free. This limit is lower at 10% of the basic salary for those who opt for the old tax regime. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.