35M | ₹37.1L Fixed CTC (₹35L Gross) — Looking for strategies to optimize taxes under both New vs Old Regimes
I'm a 35M based in Mumbai, looking for advice from folks here on optimizing tax deductions and figuring out the best ways to maximize my take-home pay.
- My Current Pay Structure
Total Fixed CTC: ₹37,10,000 / year
Basic Salary: ₹17,50,000 / year (\~₹1,45,833/month)
Flexible Allowances (HRA + Conveyance): ₹17,50,000 / year (Conveyance is ₹19,200/year, remainder is HRA)
Employer PF Contribution: ₹2,10,000 / year (12% of Basic)
Gross Annual Salary (CTC − Employer PF): ₹35,00,000 / year
(Target variable/bonus exists up to \~₹40.25L Total Reward, but I'm planning purely around fixed pay for monthly cash flow).
- Current Lifestyle & Fixed Commitments
Rent: ₹20,000/month (₹2,40,000/year).
Dependents/Health: No pre-existing ailments. Covered under corporate health insurance, but buying an independent personal base (₹5L–₹10L) + Super Top-up (₹20L–₹25L).
Loans: No active home loans or educational loans right now.
- Company Flexi-Benefits Available to Me
My company allows restructuring from the balance HRA pool for:
Corporate NPS (Sec 80CCD(2)): Up to 10% of Basic (\~₹1.75L/year).
Leave Travel Allowance (LTA): Can be declared against domestic travel bills.
- My Dilemma / Current Math
New Tax Regime: With the standard deduction (₹75k) and Corporate NPS under 80CCD(2) (₹1.75L), my taxable base drops to \~₹32.5L–₹33.25L, putting monthly TDS around \~₹48.8k (in-hand \~₹2.07L–₹2.10L after PF/NPS).
Old Tax Regime: With 80C capped at ₹1.5L (already breached by mandatory PF of ₹2.1L), ₹1.75L Corporate NPS, and standard deduction, my HRA deduction is only ₹65k/year (since ₹20k rent is very low compared to my 10% Basic threshold of ₹1.75L). This makes Old Regime TDS come out higher (₹52.8k/month).
Questions for the community:
Old Regime Levers: What additional legal avenues (outside of buying a house for Section 24(b) or massive 80D senior citizen health premiums) can high earners with low rent utilize to significantly bring down taxable income in the Old Regime?
New Regime Optimization: For those in a similar ₹35L+ gross bracket under the New Regime, are there any other flexi-allowances or structuring hacks I should look into?
EPF + VPF vs. Mutual Funds: Since I'm in the 30% slab, is it worth maxing VPF up to the ₹2.5L tax-free interest limit, or should I channel that surplus directly into equity mutual funds given a 10+ year horizon?
Appreciate any insights!