Zerodha co-founder Nithin Kamath has shed light on a significant shift in taxpayer behaviour in India during FY25, stating that nearly 72% of taxpayers nationwide opted for the New Tax Regime.
The figure was higher among Zerodha employees as over 90% chose the simplified structure, he said, while informing that Zerodha has partnered with PensionBox, retirement planning programme.
In a detailed post on social media platform X, Kamath said the trend reflects a growing preference for convenience over traditional tax-saving strategies. The New Tax Regime, introduced to simplify the compliance process, replaces numerous deductions with lower tax rates and minimal documentation.
"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 said.
The Zerodha co-founder pointed out that with most deductions eliminated under the new system, salaried individuals are left with only a Rs 75,000 standard deduction and one substantial tax-saving avenue: the employer's contribution to the National Pension System, commonly 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…
Corporate NPS allows employers to contribute up to 14% of an employee's basic salary, capped at Rs 7.5 lakh annually, with the entire amount qualifying for deduction. Kamath threw light to the fact that employers can structure this contribution from within existing salary components, ensuring no additional financial burden on companies while still enabling employees to benefit. Firms may choose to contribute over and above regular salary, but this remains optional.
"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 informed.
To make this process more accessible, Kamath announced that Zerodha has partnered with PensionBox to digitise Corporate NPS administration. The collaboration aims to simplify onboarding for HR teams and give employees an intuitive platform to set contribution levels and select between equity and debt allocations.
"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 post.
PensionBox is India's pension and retirement planning platform for people to secure their retirement with the right pension. The platform helps companies/employers to create retirement benefits for their employees to help them plan their retirement better and ensure they are better ready for golden years.
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