Corporate NPS - Save Big on Taxes in 2025!

Written By: Mobin

Companies are restructuring salaries with Corporate NPS as employees shift from HRA claims. Experts confirm rising interest in this tax-saving option since April 2025.

Trend

Corporate NPS allows 14% tax-free contribution vs 10% in old regime. Employees earning ₹12-14L can reduce taxable income below exemption limits smartly.

Benefit

Companies are moving special allowances to NPS in CTC. This converts taxable components into tax-free investments, boosting take-home salary legally.

Strategy

Ideal for employees not claiming HRA. Those paying rent <₹85,000/month gain more in new regime. High earners (>₹24L) may prefer old system for HRA benefits.

Eligibility

Paying rent to parents? Ensure proper rent agreements and receipts. Sudden rent hikes may trigger IT scrutiny under Section 143(3) for tax evasion.

Caution

New NPS regime beats old system for most mid-income employees. Only high rent-payers (₹85k+/month) benefit more from HRA claims in old structure.

Comparison

Consult your HR/CA to restructure salary with NPS. Check if shifting to new regime saves more tax based on your rent and income levels.

Action

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