THE BYSTANDER

How Salaried Employees in India Can Save Tax Under the New Tax Regime in 2026–27 Disclaimer: This article is for general educational purposes and is not a substitute for professional tax advice. Tax treatment depends on the applicable law, employer policy, documentation and individual circumstances. Confirm the treatment with your employer’s payroll or a qualified tax professional before making salary-structure decisions. Introduction: Is There Still a Way to Save Tax Under the New Tax Regime? For salaried employees in India, the new tax regime offers lower slab rates and a higher standard deduction than the old regime. However, it also restricts many of the deductions and exemptions traditionally used for tax planning. This leaves employees with an important question: Can you still reduce your income tax without relying on the old regime’s familiar deductions? Yes. Depending on your salary structure and employer’s policies, you may be able to improve your tax efficiency through legit...

India "has no unemployment benefits" — everyone believes it, and for most private-sector employees earning above the ESIC wage ceiling it's true. But if your gross wages were up to ₹21,000/month (₹25,000 for persons with disability), you've likely been an ESIC-insured person all along — with full medical care for your family, sickness pay, maternity benefit, and yes, an unemployment allowance of 50% of your wages for up to 90 days if you lose your job. Contributions were deducted from every paycheck; the benefits go unclaimed because nobody explains the machinery. This is the walkthrough. Are you covered? (Check before assuming either way) ESIC covers employees in registered establishments (generally 10+ employees) with gross wages up to ₹21,000/month . Your payslip shows the tell: an ESI deduction of 0.75% of gross wages (the employer contributes 3.25%). If that line exists, you have an Insurance Number (IP number) — find it on the payslip, your ESIC Pehchan c...

You served five-plus years, left the company, and the gratuity — money the law says is yours — hasn't arrived. Maybe HR says "it's processing." Maybe they claim you're not eligible. Maybe the company has simply gone silent. Gratuity has one of the strongest enforcement mechanisms in Indian employment law, with a dedicated authority, mandatory interest on delay, and forms designed for employees to use without lawyers. Almost nobody knows how to work it. Here's the complete walkthrough. First, confirm you're actually owed it Eligibility: five years of continuous service with the employer, payable at resignation, retirement, retrenchment, or termination (the 5-year condition drops entirely for death or disablement). Two nuances worth money: courts have treated 4 years + 240 days in the fifth year as satisfying "continuous service" — if HR rejected you at "4 years 10 months," you likely qualify; get advice before accepting the refusal...

"Sign this two-year bond or lose the offer." Nearly every fresher in Indian IT and many experienced hires have faced the service bond — and nearly everything said about it in hostels and forums is half-right. "Bonds are illegal in India" — no. "The company can make you pay whatever the bond says" — also no. The truth sits in between, it shifted meaningfully with a 2025 Supreme Court ruling, and knowing where the lines actually are is worth real money at exit time. Here's the honest map. The two myths, dispatched first Myth 1: "Employment bonds are illegal — Section 27 voids them." Section 27 of the Contract Act voids agreements in restraint of trade — and courts have long held it strikes down post-employment restraints (non-competes after you leave are largely unenforceable in India). But a bond requiring you to serve a minimum period or pay agreed compensation operates during employment, and the Supreme Court in 2025 squarely held t...