Tax Guide

Employee Lifecycle Your first salary: 5 tax decisions that save ₹50,000 every year.

"I just started my first job. What should I know about taxes from Day 1?"

Most new hires get their salary, pay TDS, and file their ITR at the year-end in the wrong order. Optimal tax planning needs to be done in April, not July. With just an April 5th deadline of your first year as a working professional, you can make decisions that will help you save up to ₹50,000 or more for an entire year.

Five decisions are as follows:

(1) Selecting your tax regime – new is the default, but old is recommended if you have HRA or a home loan.

(2) Filing Form 12BB to your employer for claiming all the deductions.

(3) Asking for salary restructuring to get meal coupons and NPS.

(4) Joining NPS of your employer under Section 80CCD(2).

(5) Clarifying Part A and Part B of your Form 16.

What the law says — exact provisions

Section 115BAC

New tax regime is the default from FY 2025-26. You can opt for old regime at ITR filing (salaried).

Form 12BB

Declaration submitted to employer for HRA, LTA, home loan, Section 80C investments — determines TDS.

Rule 3(7)(iii)

Meal vouchers up to ₹50/meal exempt from tax in new regime. ₹31,200/year saved.

Section 80CCD(2)

Employer NPS contribution up to 14% of basic salary is deductible even in new regime.

CA Rishabh's verdict

Bottom line

Don't wait till July to think about tax. Make these 5 decisions in April and save ₹30,000–₹50,000 automatically through lower TDS all year.