Income Tax Act 1961 · AY 2026-27 · Legal Tax Saving

Tax Planning & Optimisation

Strategic, 100% legal tax planning — Old vs New Regime optimisation, Section 80C/80D maximisation, capital gains planning, HRA, NPS and salary structuring. Ensure you pay the minimum legal tax.

Tax Planning Services

Strategic Tax Planning & Optimisation

Legal, proactive tax planning to minimise your tax liability — not tax evasion, but smart use of every deduction, exemption and regime option available under the Income Tax Act 1961.

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Old vs New Regime Optimisation

Detailed computation under both regimes — recommending the one that saves you more for FY 2025-26 (AY 2026-27). Salaried, business, professional, HUF and company assessees all differ.

Old Regime · New Regime · Sec 115BAC · AY 2026-27
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Section 80C Maximisation

Optimise your ₹1.5 lakh Sec 80C bucket — ELSS (3-yr lock-in, market-linked returns), PPF (guaranteed, tax-free maturity), NSC, LIC, EPF, home loan principal, children's tuition fees.

Sec 80C · ELSS · PPF · NSC · ₹1.5 lakh

Health Insurance — Section 80D

₹25,000 for self/family + ₹25,000 for parents (₹50,000 if senior citizens) = up to ₹1,00,000 total. Plus ₹5,000 for preventive health check-ups. One of the most underutilised deductions.

Sec 80D · ₹25K self · ₹50K parents · Senior Citizens
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HRA & Home Loan Optimisation

HRA exemption — least of: actual HRA received, 50%/40% of basic, rent paid minus 10% of basic. Plus Sec 24(b) home loan interest ₹2 lakh (self-occ) + Sec 80C principal repayment ₹1.5 lakh.

HRA · Sec 24(b) · Home Loan · ₹2 lakh
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Capital Gains Tax Planning

LTCG on equity/MFs — ₹1.25 lakh annual exemption (Sec 112A). Tax-loss harvesting to offset gains. Sec 54 (residential property reinvestment), Sec 54EC (NHAI/REC bonds, ₹50 lakh, 6 months).

LTCG · STCG · Sec 54 · Sec 54EC · Tax-Loss Harvesting
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Business Income Optimisation

Presumptive taxation under Sec 44AD (6%/8% of turnover) and Sec 44ADA (50% of professional receipts) eliminates need for books of accounts. Depreciation optimisation, expense structuring and loss set-off.

Sec 44AD · Sec 44ADA · Depreciation · Loss Set-off
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NPS & Retirement Planning

NPS additional deduction ₹50,000 (Sec 80CCD(1B)) available only in Old Regime. Employer NPS up to 10%/14% of basic deductible in BOTH regimes (Sec 80CCD(2)). Tax-free partial withdrawal from NPS at maturity.

NPS · Sec 80CCD(1B) · ₹50K · Employer NPS · Both Regimes
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Advance Tax Planning

Avoid interest under Sec 234B (shortfall) and 234C (quarterly instalments) — proper advance tax computation and timely payment: 15% by 15 Jun, 45% by 15 Sep, 75% by 15 Dec, 100% by 15 Mar.

Advance Tax · Sec 234B/C · Quarterly Schedule
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Salary CTC Restructuring

Optimise your CTC — maximise tax-free components: LTA (Sec 10(5) — 2 journeys in 4 years), gratuity (Sec 10(10)), meal coupons, phone/internet reimbursement, uniform allowance and ESOP tax timing.

CTC Restructuring · LTA · Gratuity · ESOP · Allowances
Old vs New Regime

Which Regime Saves You More?

The right regime depends on your total deductions. Our CAs compute both and recommend the better option.

⚡ New Tax Regime (Default)
Lower tax rates across all slabs
Standard deduction ₹75,000 allowed
Employer NPS (80CCD(2)) allowed
No other deductions (80C, 80D, HRA, LTA etc.)
Section 87A rebate up to ₹25,000 (income ≤₹7 lakh)
Default regime from FY 2023-24 onwards
Better for those with few deductions or high income
NEW REGIME SLABS — FY 2025-26
₹0 – ₹3 lakhNIL
₹3 – ₹7 lakh5%
₹7 – ₹10 lakh10%
₹10 – ₹12 lakh15%
₹12 – ₹15 lakh20%
Above ₹15 lakh30%
📚 Old Tax Regime
All deductions available (80C, 80D, HRA, LTA, home loan)
Standard deduction ₹75,000 allowed
HRA exemption under Sec 10(13A)
House property loss set-off up to ₹2 lakh
NPS self 80CCD(1B) ₹50,000 extra
Rebate u/s 87A up to ₹12,500 (income ≤₹5 lakh)
Better for those with high deductions (>₹4 lakh total)
OLD REGIME SLABS — INDIVIDUAL (below 60)
₹0 – ₹2.5 lakhNIL
₹2.5 – ₹5 lakh5%
₹5 – ₹10 lakh20%
Above ₹10 lakh30%
💡 Break-even Rule of Thumb

If your total deductions (80C + 80D + HRA + home loan + NPS etc.) exceed approximately ₹3.75 lakh (for income ₹10–15 lakh) or ₹4.25 lakh (for income below ₹10 lakh), the Old Regime is likely better. Below this, the New Regime usually wins. Use our calculator for your exact numbers.

Deduction Reference

All Major Deductions — AY 2026-27

Complete list of deductions available under the Income Tax Act 1961. Columns show which regime allows each deduction.

SectionWhat It CoversMax LimitAvailable In
80CELSS (MF), PPF, LIP, NSC, EPF, home loan principal, tuition fees₹1,50,000Both — Old only
80CCD(1B)NPS additional contribution by individual (over 80C)₹50,000Old Regime
80CCD(2)Employer NPS contribution — 10%/14% of basicNo ceilingBoth Regimes
80DHealth insurance — self/family (₹25K) + parents (₹25K/₹50K)₹25,000–₹1,00,000Old Regime
80EEducation loan interest — 8 consecutive yearsNo limitOld Regime
80EEAAdditional home loan interest — first-time buyer (stamp ≤₹45L)₹1,50,000Old Regime
80GDonations to approved institutions — 50%/100% deductible50%–100% of donationOld Regime
80GGRent paid (no HRA component) — lower of ₹5K/month, 25% of income, actual₹60,000/yearOld Regime
80TTAInterest on savings account (individual/HUF)₹10,000Old Regime
80TTBInterest on all deposits — senior citizens only₹50,000Old Regime
Sec 24(b)Home loan interest — self-occupied property₹2,00,000Old Regime
Sec 10(13A)HRA exemption — actual HRA, 50%/40% salary, rent–10% salaryLeast of 3 criteriaOld Regime
Standard DeductionAll salaried employees and pensioners₹75,000Both Regimes
Sec 87A Rebate (New)Full rebate if taxable income ≤ ₹7 lakhUp to ₹25,000New Regime
Sec 87A Rebate (Old)Full rebate if total income ≤ ₹5 lakhUp to ₹12,500Old Regime

* Surcharge: 10% (50L–1Cr) | 15% (1Cr–2Cr) | 25% (2Cr–5Cr) | 25% New/37% Old (>5Cr). Health & Education Cess: 4% on all. Crypto income: 30% flat u/s 115BBH regardless of regime.

FAQ

Tax Planning Questions

Should I opt for Old or New Regime in FY 2025-26?+

The New Regime is the default from FY 2023-24. It's better if your total deductions are small. The Old Regime wins when your deductions exceed roughly ₹3.75–4.25 lakh. Key deductions to consider: ₹1.5L under 80C, ₹25K health insurance (80D), ₹2L home loan interest (Sec 24b), HRA, NPS ₹50K (80CCD(1B)). Use our free calculator to get your exact comparison.

What is the Section 87A rebate for FY 2025-26?+

Under the New Regime: full rebate of up to ₹25,000 if your taxable income does not exceed ₹7,00,000 — making effective tax NIL for income up to ₹7 lakh (after standard deduction of ₹75,000, i.e., gross income up to ₹7.75 lakh). Under the Old Regime: rebate up to ₹12,500 if total income ≤ ₹5,00,000. Note: Marginal relief applies to prevent disproportionate tax jumps just above these limits.

Can I save tax on LTCG from equity mutual funds?+

Long-Term Capital Gains (LTCG) from equity MFs and listed shares (held >1 year) up to ₹1,25,000 per year are exempt (Sec 112A). Above ₹1,25,000, LTCG is taxed at 12.5% (from Budget 2024 — earlier 10%). Tax-loss harvesting strategy: sell loss-making equity investments before 31 March to offset LTCG gains. Short-term gains (≤1 year) are taxed at 20% flat (STCG — Sec 111A, revised in Budget 2024).

How can an HUF reduce my family's total tax?+

A Hindu Undivided Family (HUF) is treated as a separate taxpayer with its own PAN and basic exemption limit (₹3L Old, ₹4L New Regime for FY 2025-26). By routing joint family income (ancestral property rent, investments) through an HUF, the family benefits from an additional basic exemption slab and all Section 80C/80D deductions. To form an HUF, you need a Karta, at least one co-parcener, and the income must genuinely belong to the HUF — not a salary diversion.

Is NPS employer contribution deductible in the New Regime?+

Yes — this is one of the very few deductions available in the New Regime. Under Section 80CCD(2), the employer's NPS contribution up to 10% of basic+DA (14% for central/state government employees) is deductible even under the New Regime. This is an important benefit: ask your employer to route part of your CTC as NPS employer contribution to reduce taxable income regardless of which regime you choose.

Get Your Tax Optimised for FY 2025-26

Old vs New Regime comparison included with every ITR filing. Free tax planning consultation.

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