When should I start tax planning?

At the start of the financial year, not the end. Planning early lets you spread investments across the year, claim HRA correctly month to month, and avoid a March scramble. That said, even last-minute planning before filing can recover deductions you missed.

Is tax planning useful if I am on the new regime?

Yes, but it looks different. The new regime removes most deductions, so planning shifts to confirming the regime is right for you, using 80CCD(2) employer NPS (still allowed), and structuring salary efficiently — rather than chasing 80C.

What is the most overlooked salaried deduction?

The additional ₹50,000 under Section 80CCD(1B) for NPS, and parents' health-insurance premium under 80D. Both are common, legitimate, and routinely missed.

Does salary structure affect my tax?

It can, under the old regime — components like HRA, LTA and employer NPS (80CCD(2)) are treated differently from plain salary. Whether restructuring helps depends on your regime and situation.

How does DrishtiTax fit into planning?

The Planner report lays out a month-by-month plan to use every deduction cap for the year ahead, with catch-up math if you start mid-year. It is guidance you act on yourself or with your CA.

Salary tax planning · FY 2025-26 (AY 2026-27)

Salary tax planning: a practical guide for FY 2025-26

Four levers decide how much tax a salaried person pays — the regime, the deductions, the timing, and the salary structure. Here is how to use each, with the caps that matter this year.

Plan my year Estimate my savings

Lever 1 — choose the right regime first

Every other decision follows from this one. The new regime is the default for FY 2025-26 and is cheaper for most salaried taxpayers, thanks to the ₹75,000 standard deduction and zero tax up to ₹12 lakh of taxable income. The old regime wins only if your deductions are large. Settle the regime before you plan the rest.

Lever 2 — use every deduction cap (old regime)

Section 80C — ₹1,50,000: EPF, PPF, ELSS, life insurance, home-loan principal, children's tuition
Section 80CCD(1B) — ₹50,000 extra for NPS Tier-I, over and above 80C
Section 80CCD(2) — employer NPS contribution; deductible even in the new regime
Section 80D — ₹25,000 self/family (₹50,000 if senior), plus ₹25,000–₹50,000 for parents
Section 24(b) — up to ₹2,00,000 home-loan interest for a self-occupied house
HRA — claim against actual rent paid; keep receipts and the landlord's PAN where required

Lever 3 — get the timing right

1Spread 80C and NPS across the year instead of a March lump sum, so cash flow is comfortable and proofs are ready.
2Submit investment declarations to payroll early so TDS is not over-deducted through the year.
3Keep rent receipts, premium receipts and loan certificates as you go — not the night before filing.
4Before filing, sweep up anything you invested after the payroll declaration window; it can still be claimed.

Planning is for both years at once

When you file, you are closing one year (FY 2025-26) and you are already living in the next (FY 2026-27). The best plans look backward to recover what you missed and forward to set up the year ahead. DrishtiTax's Combo does exactly that from one upload.

Lever 4 — structure, then verify on your numbers

Under the old regime, how your salary is split (HRA, LTA, employer NPS) changes the tax. Under the new regime it matters less. Rather than guess, test your actual figures: the salary-specific guides below and the free calculators show the effect, and DrishtiTax confirms it from your Form 16.

Tax planning for ₹10 lakh salary, ₹12 lakh, ₹15 lakh and up — worked examples
Old vs new regime calculator — compare both in your browser
80C and 80D calculators — see the tax saved per rupee invested

Frequently asked questions

Educational information

This page is general information for salaried taxpayers in India, not legal, financial or chartered-accountancy advice. Tax outcomes depend on your full, individual circumstances. Figures use FY 2025-26 (AY 2026-27) rules and may change. Verify against official sources or a qualified professional before acting.

Build your salary tax plan

Upload one document — Form 16, AIS or ITR. See your estimated savings opportunity in under a minute. The preview is free; pay only if the report is worth it to you.

Plan my year How it works

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