Tax Planner (Old vs New + Savings)

Who can use this

• All salaried individuals
• Business owners and professionals
• Investors and property owners
• Entrepreneurs and self-employed professionals
• HUFs and trusts
• Anyone seeking to reduce tax burden legally

Who cannot use this

• Non-resident individuals (different tax treatment)
• Entities with no taxable income

Documents required

• Last filed ITR and assessment order
• Salary slip (current year, if employed)
• Investment statements (PPF, NSC, ELSS, life insurance)
• Property documents and rental income proofs
• Medical insurance policies
• Home loan statement
• Business profit & loss statement (if applicable)

Step-by-step process

1. Compare Old vs New Tax Regime: Calculate both scenarios — Old Regime: Apply deductions (80C ₹1.5L, 80D, 80E, 80TTA, 24b, HRA, NPS), then tax slabs. New Regime: Apply standard deduction ₹50K (only), no other deductions, lower tax slabs. Calculate tax under both. Choose lower.
2. Estimate total income for current financial year — Add up all expected income: salary, bonus, rental income, business profit, investment returns, interest, dividend. Create month-wise income projection to anticipate advance tax requirements.
3. Map Section 80C deductions (max ₹1.5 lakh) — Identify eligible investments/expenses: PPF (₹1.5L), ELSS mutual funds (₹1.5L), life insurance premium, NSC, sukanya samriddhi, tuition fees, home loan principal. Prioritize by interest rate and liquidity.
4. Evaluate Section 80D (Medical Insurance) deduction — Review medical insurance premiums for self/spouse/parents. Under 60: max ₹25K deduction; age 60+: max ₹50K. Compare existing policy vs new cover. Lock in premium if adding coverage.
5. Plan Section 80E education loan interest deduction — If you or dependent has education loan, entire interest paid is deductible (no ceiling limit). Continue payments or accelerate if income is high. Verify loan eligibility (recognized institution).
6. Calculate Section 24(b) home loan interest deduction — If you own second/additional residential property on loan, max ₹2L interest deduction allowed. Estimate annual interest and factor into plan. First property self-occupied: max ₹2L. Second property (let-out): no ceiling.
7. Assess Section 80TTA savings account interest deduction — If income <50L (ITR-1), can deduct up to ₹10K savings account interest earned. Maintain savings account; verify interest earned in latest bank statement. (Old Regime only; New Regime doesn't allow.)
8. Evaluate NPS contribution and tax deduction — Contribute to National Pension System: Section 80C allows ₹1.5L (NPS counts within 80C ceiling). Section 80CCD(1b) allows additional ₹50K above 80C ceiling for NPS. Total: ₹2L if using only NPS.
9. Plan HRA deduction if eligible — If salaried and paying rent (not living in own property): HRA deductible. Lesser of: 50% salary (metro) / 40% (non-metro), or 10% salary, or actual rent paid. Document rent receipts from landlord.
10. Optimize investment timing within financial year — Spread deduction investments across financial year: PPF (April-March), ELSS (monthly SIP preferred over lump sum), insurance (monthly premiums), NPS (quarterly/annual). Avoid end-of-March rush.
11. Estimate provisional tax liability and advance tax dues — Calculate: (Total Income - Deductions) × Tax Rate = Tax Liability. If tax >₹10K, advance tax is due. Four quarterly installments: June 15, Sept 15, Dec 15, March 15 (25% each installment required by due date).
12. Plan advance tax payments to avoid penalty — Pay each installment by due date. If you miss, interest @1% per month applies. Underpayment of advance tax: interest on shortfall. Plan cash flow to make timely payments.
13. Track TDS deducted on salary and other income — Collect Form 16 from employer (monthly TDS). For other income: Form 16A (if TDS on interest), Form 16B (if TDS on rental), Form 16C (if TDS on commission). Total TDS will offset advance tax and final tax demand.
14. Review capital gains planning (short/long term) — Optimize timing of selling securities/property: long-term capital gain (1+ year holding): lower tax rate (20% with indexation for property). Short-term: ordinary rate. Offset gains with losses if applicable.
15. File ITR by July 31 and claim all deductions on e-Filing — By July 31 of assessment year, file ITR using planned deductions, advance tax paid, TDS received, and capital gains optimized. Use e-Filing portal. Claim all documented investments and deductions.

Related reading

• Why Is My ITR Refund Delayed in 2026? (And How to Fix It)
• Tax Year vs Assessment Year — What Changed Under the Income Tax Act 2025
• ITR-1 vs ITR-2: Which Income Tax Return Form Should You File? (AY 2026-27)