Last Updated: June 2026 — FY 2025-26 (AY 2026-27)
Smart tax planning can significantly reduce your tax burden. Here are the most effective income tax saving strategies for FY 2025-26.
1. Choose the Right Tax Regime
For FY 2025-26, the New Tax Regime gives zero tax up to Rs. 12.75 lakh for salaried individuals. If your deductions (80C + 80D + HRA + home loan interest) are substantial, Old Regime may still be better. Calculate both before deciding.
2. Maximise Section 80C (Old Regime)
Invest up to Rs. 1,50,000 in ELSS funds, PPF, EPF, NSC, or life insurance to claim the full 80C deduction. ELSS has the shortest lock-in (3 years) and market-linked growth.
3. Claim NPS Deduction (80CCD1B)
Invest an additional Rs. 50,000 in NPS (National Pension System) under 80CCD(1B), over and above the 80C limit. This is available under both regimes via employer contribution under 80CCD(2).
4. Health Insurance Under 80D
Pay health insurance premiums for yourself (Rs. 25,000) and senior citizen parents (Rs. 50,000) to save up to Rs. 75,000 in deductions. This is available under Old Regime only.
5. HRA Exemption
If you are paying rent, claim HRA exemption under Old Regime. Keep rent receipts and ensure landlord’s PAN is obtained if annual rent exceeds Rs. 1 lakh.
6. Home Loan Benefits
- Section 24(b): Deduct up to Rs. 2,00,000 on home loan interest (self-occupied, Old Regime)
- Section 80C: Principal repayment also qualifies for 80C deduction
7. File ITR on Time
File by 31 July 2026 to avoid late fee of Rs. 5,000 and interest under 234A. Early filing also means faster processing of any refund due.
Me and my wife are co-owners of house. We pay annual interest of 2.8 lakhs. will the whole amount be used as deduction benefit from my as well as my wife Income.
Since both of you are co-owner and loan is take in both your names, both of you can take home loan Interest benefit for more details visit: https://incometaxreturnindia.com/income-tax-on-house-property/
very useful
Very useful informations.
Pl. let me know that the Accrued interst re-invested in Bank FD for 5 years under cumulative scheme is exempt under 80/ C ? Pl. let me know. Thanks
Pallavi interest received from any bank Fixed deposit is taxable and need to be added in your total income while file Income tax return
Pls tell me which ITR is applicable for me from the below mentioned details. Sale- 45,03,244, Net profit – 2,36,250/-, O/Source Income Rs. 31,602/-, 80C Rs.43140/- & Bank HB Loan Interest Rs.20052/-. Tax liability Rs. 480/-. Am I liable to audit / tax audit and where can show my HB Loan Interest Amt. in ITR ? Pls reply soon.
Since you are getting business income please use Income tax form 4 for filing tax return
sir, where can i show my HB Loan Interest amt. in ITR 4 ?
I have paid the LIC premium for 2013-14 Ist half year in February, 2013. Whether I can claim the portion of LIC premium from April to June for IT rebate for the FY2013-14?
Please tell be the IT rule provisons also.
Since LIC premium is paid in Feb 2013,, you can take tax benefit in financial year 2012-2013 only. LIC premium is allowed on actual payment basis.
Interest on Saving bank account is exempted in Financial 2013-2014?
Interest from saving account is allowed as deduction under section 80TTA tax/
I am service in LTd company. can I save tax for 80G for donation in Charitable trust ???
Donation to charitable trust is eligible for 80G deduction on condition that trust have applied to income tax office for 80 Exemption
To claim “Loss from housing property Letout” do I need to submit “Rental agreement” as a landlord? My organization is asking for this. What to do????
If you are getting rent , rent agreement on plain paper is sufficient as a proof .
i am working in a pvt company for 41/2 years and contributing in recognized PF account. Now. i am planning to join a govt job. Can i transfer PF amount to NPS account to save tax? If I complete 5 years of job ( out of which I didn’t contribute for 2 months due to leave without pay), withdrawl from PF will attract TDS?
I have booked a flat in Gaur yamuna city in June 2013 at pre launch rate. Kindly advice when should I sell the flat to save on Long term capital gain. Kindly also advice whether I should purchase tax free bonds to save any tax and whether the invested amount in bonds should be profit or the entire sale amount.
my gross taxable earning before exemption is 1,097,537 pa and in hand salary is 85000 per month without tax deduction,and I have taken education loan Rs.900000 at 10.75% interest rate ,till august it is simple interest and then it will become compound interest. So I want to know shall I prepay my education loan or not
Since your total income is below taxable limit, you will not be getting an tax benefit from education loan. IT make sense to pay ht loan and save interest.
How it is below taxable limit my gross taxable earning before exemption Rs. 10.97,537 /- per annum
I have got entry for withdrawl EPF in Form 26AS ,but i didnt get any FORM16 for that ,so would the EPF be a part of Gross Total Income and how would i calculate it to add in gross income .Please guide.
No form 16 is required. You can file return on basis of form 26AS only.
So EPF is a part of gross income and please guide about as in FORM26AS the entry specifies 21k but i have recieved 48K with tax deducted 4k.How much i do add to gross total incom 21k or 48k.With this i have got leave encashment of 15K ,so do i have to fill ITR2 Form instead of ITR1?
Thanks for replying!
Can i gift Rs.1 lac to my daughter who has crossed 18years of age?
Can she invest that in her PPF account that has been just opened?
Will there any tax liability on any of us?
Dear Bimal, This is best tax saving option. Gift made to your daughter is not taxable in her hand. and Interest earned by her is also tax free. This will result in overall tax saving.
hi…
i am a govt servant (teacher),
by a major accident i was injured, Rs. 15,00,000 expended for my treatment. i have received Rs.2,75,000 medical reimbursement. is that reimbursement amount should show in returns,,???
please help me…
Sir Medical Reimursement is not taxable and is not required to be shown in income tax return
thank you….
would you please tell me what rules are involved in this subject..
We women self help group(SHG) get fund from Govt.for natural resource management ,whether there will be any tax deduction from the fund we get?
we pay labour through master roll from our A/c and and material to the dealer.
we have no other extra income.We can get maximum 8-10 lakh per year for (60% for labour and maximum 40% for material ) for the development of our own field through our registered association.
Very Informative and Useful. Thanks!
I’ve never filed ITR. I joined my latest Job on 03rd Oct’13. I never declared any Investements. Can I file an ITR for 2013-2014 and 2014-2015 Cycle now?
Please anybody help me to get answers for this.
My annual salary is ?24,00,000/-
I spent ? 6,00,000/- on my agriculture land. But I didn’t get from that because of heavy rain. Could I get tax exemption for this loss
Income from Agriculture is not taxable. And loss from agriculture income can be adjusted from your total income.
sir if a person has worked fro only 5 months & income tax has been cut for full year . how can we get back the tax paid in excess. pls reply to my mail. its. urgent………………………………..
Jagadish,
Please file your income tax return. This is the only way you can claim your income tax refund from Income tax department.
Dear Sir,
I have two house in same city. First flat brought in the year 2008 and second flat in year 2013(possession planned in June2016) . Both flats are in Bank loan and as of now loan outstanding is there for both flats.Now I am planning sell first flat which was brought in year 2008. Can I use capital gain from this sale proceeds to repay the outstanding loan of first flat which was purchased in 2008 in Bank loan and invest remaining amount in paying second home(whose possession will be in June 2016) repayment?