Free tool · FY 2025-26 · Every lever cited
Salary Optimizer — same CTC, lower tax
Your CTC is negotiable with the taxman, not just with HR. Model employer NPS under Section 80CCD(2) (yes — it works under the new regime), car lease perquisite, meal cards, HRA and Chapter VI-A, then see which regime wins on the optimized structure.
Your current structure
You are leaving on the table
₹23,296 / year
Current tax ₹1,92,400 (new regime) → optimized ₹1,69,104 (new regime), same cost to your employer. Employer must agree to the restructure — this is a payroll change, not an ITR trick.
Each lever, measured alone
| Lever | New regime saves | Old regime saves |
|---|---|---|
| Employer NPS to 14% of basic (₹1,12,000/yr) Section 80CCD(2) — works under the NEW regime too | ₹23,296 | ₹24,960 |
| Meal card at ₹2,200/month Rule 3(7)(iii) — ₹50/meal; NOT available under the new regime (2020 proviso) · New-regime saving is ₹0 by law — most optimizers get this wrong. | ₹0 | ₹8,237 |
| Company car lease ₹25,000/month (perquisite ₹1,800/month instead) Rule 3(2) Table II — perquisite replaces the actual car cost in taxable salary · Illustrative at ₹25,000/month — enter your own figure above. | ₹57,907 | ₹86,861 |
| Fill 80C to ₹1,50,000 and 80D to ₹25,000 Sections 80C / 80D — old regime only | ₹0 | ₹54,600 |
New regime (115BAC) · winner
Current: ₹1,92,400
Optimized: ₹1,69,104
Old regime
Current: ₹4,13,400
Optimized: ₹3,25,603
Assumptions: basic = 40% of CTC (₹8,00,000); HRA component taken as 40% of basic when rent is entered (Rule 2A); employer PF+NPS aggregate above ₹7,50,000 treated as perquisite u/s 17(2)(vii); car lever compares lease rental against the Rule 3(2) perquisite value; meal card excluded under the new regime per the proviso to Rule 3(7)(iii). Surcharge and 4% cess applied per slabs. This models a CTC-neutral restructure your employer must implement — talk to us before you take it to HR. Book a salary-structure review →
Reviewed by Harun Raaj, CA — ICAI Membership No. 238303 · Firm Reg. 19027S · Updated July 2026
Frequently Asked Questions
Does any salary restructuring work under the new regime?+
1. Yes — the one most people miss is employer NPS under Section 80CCD(2), deductible at up to 14% of basic salary (Finance (No. 2) Act 2024) even under the new regime. Car lease perquisite valuation under Rule 3(2) also works, because it is a valuation rule, not an exemption.
Why does the meal card show zero saving under the new regime?+
2. The proviso to Rule 3(7)(iii) (inserted 2020) withdraws the ₹50-per-meal concession for employees taxed under Section 115BAC. Meal cards only reduce tax if you file under the old regime — most calculators get this wrong.
Is this an ITR trick I can claim at filing time?+
3. No. These are payroll-level components your employer must put in your CTC structure. The tool models a cost-neutral restructure; implementing it is an HR/payroll change effective from your next revision.
How does the car lease lever save tax?+
4. When the employer provides a leased car used partly for personal purposes, your taxable salary includes only the Rule 3(2) perquisite (₹1,800 or ₹2,400 per month, plus ₹900 for a driver) instead of the actual lease rental — the difference leaves your taxable income.
Is there a limit on employer NPS plus PF?+
5. Yes — Section 17(2)(vii) taxes aggregate employer contributions to PF, NPS and superannuation above ₹7,50,000 a year as a perquisite, and Section 17(2)(viia) taxes the accretion on the excess. The tool caps the NPS lever automatically.
Which regime should I pick after optimizing?+
6. The tool computes both regimes on the optimized structure and highlights the winner — the answer often flips once employer NPS is maxed, because the new regime keeps 80CCD(2) but loses HRA, meal card and Chapter VI-A.