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.
- ✓Detailed computation under both regimes
- ✓ELSS (3-yr lock-in, market-linked returns)
- ✓PPF (guaranteed, tax-free maturity)
- ✓NSC
- ✓LIC
- ✓EPF
- ✓Home loan principal
- ✓₹25
- ✓000 for self/family + ₹25
- ✓000 for parents (₹50,000 if senior citizens) = up to ₹1
- ✓00
- ✓000 total
- ✓Least of: actual HRA received
- ✓50%/40% of basic
- ✓Rent paid minus 10% of basic
- ✓Presumptive taxation under Sec 44AD (6%/8% of turnover)
- ✓Sec 44ADA (50% of professional receipts) eliminates need for books of accounts
- ✓NPS additional deduction ₹50
- ✓000 (Sec 80CCD(1B)) available only in Old Regime
- ✓Proper advance tax computation
- ✓Timely payment: 15% by 15 Jun
- ✓45% by 15 Sep
- ✓75% by 15 Dec
- ✓100% by 15 Mar
- ✓2 journeys in 4 years)
- ✓Gratuity (Sec 10(10))
- ✓Meal coupons
- ✓Phone/internet reimbursement
- ✓Uniform allowance
- ✓ESOP tax timing
Which Regime Saves You More?
The right regime depends on your total deductions. Our CAs compute both and recommend the better option.
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.
All Major Deductions — AY 2026-27
Complete list of deductions available under the Income Tax Act 1961. Columns show which regime allows each deduction.
* 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.
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.