Top Tips To Save Tax On New & Old Regime

The Income Tax Act is like a buffet—many ways to shrink that tax bill with all sorts of deductions and exemptions. If you’ve got your act together and do some planning (not your last-minute-in-March panic), you can keep a solid chunk of your money.

Let’s talk about real methods to save on taxes for FY 2025–26, no jargon overload.

First, About Those Two Tax Regimes…

Alright, before you get lost in the sauce, you have to know there are two “tax regimes”—sounds fancy, but it’s just two ways to get taxed in India.

The Old One: This is like the tax version of your grandma’s house—loads of nooks, crannies, and places to hide stuff. Claim all the deductions you want: 80C, 80D, HRA, and all that jazz. Works amazing if you’re already putting money into investments, insurance, home loans, etc.

The New One: This regime popped up for folks who don’t want the headache. Lower tax rates, almost zero deductions. Basically, for anyone who can’t be bothered with paperwork or just doesn’t have much in the savings/investment department.

You can swap ‘em every year if you want, which is pretty neat.

If You’re on Team Old Regime, Here’s Where the Gold’s At:

1. Section 80C Investments (The All-Rounder)

Every CA swears by this one: toss up to ₹1.5 lakh into stuff like PPF, EPF, ELSS, NSC, those 5-year tax-saving FDs, life insurance premiums—even your home loan’s principal.

2. Health Insurance (Section 80D)

Look after yourself, and you score tax savings too. Get up to ₹25,000 for your policy, and an additional ₹50,000 if your family members are over 60. Don’t overlook this—medical expenses can be extremely high these days.

3. Home Loan Interest (Section 24(b))

Did you buy a house? You can claim up to ₹2 lakh annually on the interest you pay to the bank, in addition to your 80C principal deduction.

4. National Pension Scheme (Section 80CCD(1B))

Extra cherry on top—invest in NPS, and get an additional ₹50,000 deduction, even after maxing out 80C.

5. Education Loan Interest (Section 80E)

If you’re still paying off your or your kid's higher education loan, the interest bit is fully deductible for up to 8 years. Not bad, honestly.

6. Donations (Section 80G)

Feeling generous? Donations to approved charities can get you a 50–100% deduction. Just make sure you don’t fall for WhatsApp “charity” scams—only legit organizations, please.

Rolling With the New Regime?

Here's the catch—nearly all those juicy deductions disappear. But there are a couple you can still use:

Employer’s Contribution to NPS: If your company puts money in your NPS, that’s up to 10% of basic plus DA, and it gets you a deduction.

Great news for all salaried individuals—celebrate because the standard deduction has been increased to a hefty ₹75,000! That’s up from the previous ₹50,000, so you can keep more of your hard-earned money. And guess what? Pensioners benefit from this too! Time to rejoice!

HRA: With the new regime, HRA is generally out, but sometimes, depending on how your employer sets up payroll, there are loopholes. Worth checking.

Quick Tips to Save More (Don’t Be That Guy Who Wakes Up in March)

- Run your numbers! Use an online tax calculator and see which regime saves you more. Don’t guess.

- Seriously, don’t scramble in the last week of March—plan your investments at the start of the year.

- If you’re disciplined about investing, stick to the old regime. Like things easy? The new regimes got your back.

- Keep all your receipts and proofs. The tax office doesn’t care how good your memory is.

Look, tax saving isn’t rocket science. As long as you know your options—the old regime with all the deductions or the simple new one—and you don’t leave everything for the last minute, you’ll keep more of your hard-earned cash. In a country where every paisa counts, that’s reason enough to care. Now, go get that refund. Or at least, pay less tax than your neighbour.