New Tax Changes Out NOW – Know more
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New Tax Framework 2026

Less Tax, More In-hand
Take Home More from the same CTC

From 1 April 2026, employee benefit limits are increasing significantly, allowing organisations to deliver higher in-hand salary without increasing overall compensation cost.

Tax Framework Update

What's Changing from 1 April 2026

The new tax framework significantly raises these benefit allowances — here's exactly how much more your employees take home.

Meal Allowance

Per Meal · Tax-Free

Before

₹50

per meal

Now

₹200

per meal

Save up to ₹3,000/month more in taxes

Gifts & Vouchers

Yearly · Tax-Free

Before

₹5,000

per year

Now

₹15,000

per year

₹10,000 more in tax-free gifting annually

Car Benefit

Below 1.6L engine

Before

₹1,800

per month

Now

₹5,000

per month

₹3,200 extra commute relief every month

Car Benefit

Above 1.6L engine

Before

₹2,400

per month

Now

₹7,000

per month

₹4,600 extra commute relief every month

Driver's Salary

Monthly · Reimbursement

Before

₹900

per month

Now

₹3,000

per month

₹2,100 more driver cost covered tax-free

Children's Education

Monthly · Per Child

Before

₹100

per month

Now

₹3,000

per month

Biggest jump — 30x more for each child

Hostel Allowance

Monthly · Accommodation

Before

₹300

per month

Now

₹9,000

per month

₹8,700 more in accommodation relief monthly

New HRA Update

Important

Bengaluru, Pune, Hyderabad and Ahmedabad are now classified under the 50% HRA exemption category.

Platform Capabilities

WhatLess Tax, More In-handEnables

A smarter framework that transforms how organisations think about employee compensation — turning tax rules into take-home advantages.

01Cost Neutral

Optimises CTC structures without increasing payroll cost

02All-in-One

Combines meal, fuel, gift & other flexi benefits into a single integrated program

03100% Compliant

Maintains compliance with built-in governance

Zaggle Platform

How Does Zaggle Support?

Zaggle enables tax-efficient employee benefits that are simple for employees to access and structured for organisations to manage with built-in compliance.

Multi-Wallet Card

  • Meals, fuel, gifts and more on one card
  • Accepted across 7M+ Visa / RuPay merchants
  • Tap, scan, swipe or pay online
  • No bill uploads required for transactions
Fully Supported

Higher Tax Savings for Employees

  • Save up to ₹1.6L annually
  • Multiple tax-efficient categories supported
  • Seamless benefit usage through the Zaggle card
Fully Supported

Digital, Compliant & Easy to Manage

  • 100% digital onboarding and KYC
  • Enterprise-grade card security
  • Compliance aligned with RBI and income tax guidelines
Fully Supported

How Zaggle Supports You

Zaggle helps HR teams design tax-efficient, compliant and digital-first employee benefit programs under the new income tax framework.

Built for Speed

From tracking benefit discovery to maximizing tax savings, everything's designed to keep your benefits clean, actionable, and always up-to-date.

100% Compliant

All benefit structures are aligned with the latest Income Tax Act amendments effective April 1, 2026.

Zero Added Cost

Restructure existing CTC to unlock more in-hand salary without increasing payroll expenses.

Digital First

Automated claim processing, instant approvals, and paperless benefit management for modern teams.

Common Questions

Frequently Asked Questions

Everything you need to know about the new tax framework

Still have questions?

Our team is here to help you understand the new tax framework

Ready to Transform Your Benefits?

Design the Future of Benefits with Less Tax, More In-hand

Get started with our expert team and unlock maximum value under the new tax framework