Income Tax on 60 Lakh Salary

With the 2025 Budget updates in play, high-income earners—especially those making Rs. 60 lakh or more annually—are prioritising two key goals: reducing tax liabilities and securing long-term financial stability. Life insurance offers a smart way to achieve both.

It’s more than just a safety net—it’s a powerful tax-saving and wealth-building tool. By investing in life insurance, you not only protect your family’s future but also optimise your tax planning. Under Section 80C of the Income Tax Act, you can claim deductions of up to Rs. 1.5 lakh annually on life insurance premiums.

And with the latest tax reforms, understanding how life insurance fits into your strategy is more important than ever. Whether you're aiming to lower your tax burden or strengthen your financial roadmap, life insurance gives you the dual advantage of protection and savings—all in one plan.

Take charge of your financial future—Compare life insurance plans now and get quote!

What is the Budget 2025 update on the income tax?

The 2025 Budget brought notable updates to India’s income tax structure, especially for high-income earners. Among the key changes are adjustments to tax slabs under the new tax regime, which aim to simplify taxation and benefit taxpayers who do not claim deductions.

Key highlights of the New Tax Regime:

• Simplified tax slabs: 

The new regime offers lower tax rates but eliminates most deductions and exemptions.

• Standard deduction retained: 

Salaried individuals can still claim a standard deduction of Rs. 50,000.

• Focus on high-income earners: 

Taxpayers earning Rs. 60 lakh or more annually may benefit from reduced complexity in filing taxes under the new regime.

Life insurance plays a vital role here. While the new tax regime limits deductions, policies like ULIPs (Unit Linked Insurance Plans) and pension plans still qualify for tax benefits under Section 80C. This makes life insurance an indispensable part of your tax-saving strategy.

Despite the introduction of the new tax regime, several provisions remain unchanged under the old regime. These include deductions and exemptions that high-income earners can still utilise to optimise their taxable income.

Key features of the old tax regime:

• Section 80C benefits: Investments in life insurance premiums, EPF, PPF, and tax-saving fixed deposits continue to qualify for deductions up to Rs. 1.5 lakh annually.
• Section 80D: Health insurance premiums remain eligible for tax deductions.
• Home loan interest: Tax benefits on home loan interest payments under Section 24 are still applicable.

For high-income earners, the old regime may be more beneficial if you have substantial deductions to claim. By investing in life insurance, you can maximise your tax savings while securing your family’s future.

Key budget highlights for high-income earners

The 2025 Budget introduced several measures specifically targeting high-income earners, making tax planning more important than ever.

• Revised tax slabs: 

The new regime offers streamlined slabs but removes deductions, impacting taxpayers who rely on exemptions.

• Standard deduction retention: 

Salaried individuals can continue to claim Rs. 50,000 as a standard deduction.

• Focus on simplification: 

The new regime aims to reduce the complexity of tax filing, benefiting high-income earners who prefer straightforward calculations.

How life insurance helps:

• ULIPs and pension plans remain eligible for tax benefits under Section 80C.
• Tax-free maturity benefits ensure that your investment grows without additional tax burdens.

For individuals earning Rs. 60 lakh or more annually, tax planning is crucial to minimise liabilities and maximise savings. Life insurance policies offer a reliable way to achieve this.

Tax-saving strategies:

• Invest in life insurance: 

Premiums paid towards life insurance policies qualify for deductions under Section 80C, up to Rs. 1.5 lakh annually.

• Choose ULIPs: 

These policies combine investment and insurance, offering tax-free maturity benefits under Section 10(10D).

• Opt for pension plans: 

Contributions to pension plans provide additional tax benefits while securing your retirement.

• Utilise health insurance: 

Premiums paid for health insurance policies can be deducted under Section 80D.

By strategically investing in life insurance and other tax-saving instruments, you can significantly reduce your taxable income and achieve long-term financial security.

Income tax slabs under old vs new income tax regime

Choosing between the old and new tax regimes can be challenging, especially for high-income earners. Below is a comparison to help you make an informed decision.

Old tax regime – Income tax slabs

New tax regime – Income tax slabs

Reducing taxable income is essential for high-income earners. Life insurance policies offer an effective way to achieve this while providing financial security.

Step-by-step tax-saving guide:

• Assess your deductions: 

Calculate eligible deductions under Section 80C, 80D, and other applicable sections.

• Invest in life insurance: 

Choose policies like ULIPs and pension plans to maximise tax exemptions and secure your future.

• Utilise health insurance: 

Pay premiums for health insurance to claim deductions under Section 80D.

• Plan retirement wisely: 

Invest in pension plans to ensure a comfortable retirement while reducing taxable income.

By implementing these strategies, you can save taxes efficiently and build a solid financial plan.

Start saving today—Compare life insurance plans and get instant quotes!

Conclusion

Life insurance is a versatile financial tool that offers high-income earners dual benefits—tax savings and financial security. With the 2025 Budget introducing new tax provisions, leveraging life insurance policies has become even more important for optimising your tax planning.

Take the first step towards securing your future and saving taxes effortlessly. Compare life insurance plans and get instant quotes today!