What is inside
- Decide your regime first
- If you are on the old regime: fill the gaps
- Whichever regime: the things that still work
- Capital gains: use the limit, set off the losses
- Advance tax and the dates that matter
- Housekeeping that saves trouble in July
- Six mistakes we see every March
Start here
Most tax planning goes wrong in one of two ways. People buy a product in March to save tax and regret it for years, or they do nothing and overpay.
- Work out which regime is cheaper for youEverything else depends on this. Our regime calculator does it in two minutes.
- Check what you have left of the ₹1.25 lakh limitLong-term gains on equity are tax-free up to this amount each year. The harvesting check shows what to book.
1. Decide your regime first
For 2026-27, the new regime has lower rates, a ₹75,000 standard deduction and no tax up to ₹12 lakh of taxable income. The old regime has higher rates but lets you claim deductions. For most salaried people without a large home loan or HRA claim, the new regime now costs less.
- Run your own numbersUse the deductions you actually claim, not the maximum you could.
- Tell your employer if you want the old regimeThe new regime is the default. You can still change your mind when you file your return.
- If you have business income, check before switchingMoving back to the old regime is restricted for business and professional income.
2. If you are on the old regime: fill the gaps
Only do these if the old regime is cheaper for you, and only where the product fits your plan anyway.
- 80C, up to ₹1.5 lakhYour EPF contribution counts first. So do home loan principal, children's tuition and term insurance premiums. Check how much room is really left before buying anything.
- If there is room, pick by purposePPF for safe long-term money. ELSS for equity with a three-year lock-in. Avoid insurance policies sold as tax savers.
- 80D, health insuranceUp to ₹25,000 for your family and a further ₹25,000 for parents, or ₹50,000 if they are over 60. Preventive check-ups count up to ₹5,000 within this.
- NPS, 80CCD(1B)A further ₹50,000 over 80C. The money is locked until 60 and part must buy an annuity, so use it only for retirement.
- Home loan interestUp to ₹2 lakh on a home you live in. Get the interest certificate from your lender.
- HRARent receipts, and your landlord's PAN if the rent is over ₹1 lakh a year. Paying rent to parents is allowed if it is real and they declare it.
3. Whichever regime: the things that still work
- Employer's NPS contribution, 80CCD(2)The one large deduction that survives in the new regime: up to 14% of basic salary. Ask HR whether part of your pay can be restructured into it.
- Standard deductionAutomatic. ₹75,000 in the new regime and ₹50,000 in the old.
- Hold assets in the right nameIncome from money you gift to a spouse is taxed in your hands. Money gifted to adult children or parents is taxed in theirs.
- Prefer growth over payoutsDividends and IDCW payouts are taxed at your slab every time. Growth options are taxed only when you sell.
4. Capital gains: use the limit, set off the losses
- Book up to ₹1.25 lakh of long-term equity gainsSell and buy back units held over 12 months. Your cost resets higher and that gain is never taxed. The limit does not carry forward.
- Do it for each family memberThe limit is per person, against their own holdings.
- Set losses against gainsShort-term losses offset any capital gain. Long-term losses offset only long-term gains. Booking a loss you were going to take anyway can cut this year's bill.
- Carry forward what is leftUnused losses carry forward for eight years, but only if you file your return on time.
- Remember debt fundsGains on debt funds bought after March 2023 are taxed at your slab whenever you sell. If your income will be lower next year, waiting until April may help.
5. Advance tax and the dates that matter
If your tax due after TDS is over ₹10,000, you owe advance tax. Salaried people usually cross this through capital gains, interest or rent.
- 15 MarchThe last advance tax instalment. By now 100% of the year's tax should be paid.
- 31 MarchThe last day for investments and sales to count for this tax year. Leave a few working days for payments and settlement.
- Tell your employer about other incomeDeclaring interest and gains to payroll lets them deduct the tax, and you avoid interest for late payment.
6. Housekeeping that saves trouble in July
- Download your capital gains statementsFrom each fund house or registrar, and your broker. Do it in April while it is simple.
- Check the Annual Information StatementIt lists what the tax department already knows: interest, dividends, sales. Your return should match it.
- Submit Form 15G or 15H if you qualifyIf your total income is below the taxable limit, this stops banks deducting TDS on interest.
- Keep proofs for six yearsReceipts, certificates and statements, in one folder.
7. Six mistakes we see every March
- Buying insurance to save tax. A policy that returns 5% a year for twenty years is an expensive way to save 30% once.
- Investing in 80C under the new regime. It saves nothing there. Invest because the product suits you, or not at all.
- Selling equity units younger than a year. The gain is short-term and taxed at 20%, with no ₹1.25 lakh limit.
- Ignoring interest income. Savings and deposit interest is taxable even when no TDS was deducted.
- Forgetting old employers. If you changed jobs, both employers may have given you the standard deduction and the lower slabs. The shortfall arrives as a tax demand.
- Leaving it to the last week. Payments fail, funds have cut-off times and holidays fall in late March.
Want this done for you?
Tax is one part of an Invsify plan. An advisor reviews your regime choice, harvesting and where each asset should sit, every year, as part of a fixed fee. Talk to an advisor.