A growing number of Indian taxpayers are moving away from complex tax-saving methods and choosing simplicity instead. Zerodha co-founder Nithin Kamath said that nearly 72% of taxpayers across the country opted for the New Tax Regime in FY25. The shift is even stronger within Zerodha, where more than 90% of employees selected the new system.
Why the New Tax Regime is becoming popular?
On X, Kamath said the trend shows that people now prefer ease of filing over chasing multiple tax deductions. The New Tax Regime was introduced to simplify income tax compliance by offering lower tax rates while removing most exemptions and deductions.
“This shift makes sense. The new tax regime trades deductions for simpler filing and lower tax rates. For many—especially younger salaried taxpayers, avoiding paperwork-heavy exemptions matters more than maximising deductions,” he wrote on X.
Limited deductions, but one key benefit remains
Kamath explained that under the New Tax Regime, salaried taxpayers have very few deductions left. Apart from the Rs 75,000 standard deduction, the main tax-saving option is the employer’s contribution to the National Pension System (NPS), also known as Corporate NPS.
In FY25, around 72% of taxpayers chose the New Tax Regime. At @zerodha , that number was over 90%.
— Nithin Kamath (@Nithin0dha) February 5, 2026
This shift makes sense. The new tax regime trades deductions for simpler filing and lower tax rates. For many—especially younger salaried taxpayers, avoiding paperwork-heavy…
Under Corporate NPS, employers can contribute up to 14% of an employee’s basic salary, with a maximum limit of Rs 7.5 lakh a year. This entire amount is tax-deductible. Kamath pointed out that companies can adjust this contribution within existing salary structures, so it does not necessarily increase their costs.
“Corporate NPS allows employers to contribute up to 14% of an employee’s basic salary (up to Rs 7.5 lakh a year), which is fully deductible. It can be structured from existing salary, so employers don’t have to pay extra while employees still get the tax benefit. Employers may also choose to contribute on top, but it isn’t mandatory,” he wrote on X.
Making Corporate NPS easier to use
To simplify the process further, Kamath said Zerodha has partnered with PensionBox to digitise Corporate NPS. The aim is to make onboarding easier for HR teams and give employees a simple way to decide how much they want to contribute and how their money is invested.
“We’ve partnered with PensionBox to make Corporate NPS fully digital, simplifying onboarding for HR teams and allowing employees to easily choose contribution levels and equity–debt allocation,” Kamath concluded the pos