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Tax Planning — Basics
Calculate your tax under both regimes before choosing — the right answer depends on your deductions.
Concept
Calculate your tax under both regimes before choosing — the right answer depends on your deductions.
The old regime has higher tax rates but allows ~70 deductions (80C, 80D, HRA, home loan interest). The new regime offers lower tax rates with a standard deduction of ₹75,000 but removes most other deductions.
हिंदी मेंOld regime में higher tax rates हैं लेकिन ~70 deductions मिलती हैं। New regime में lower rates हैं लेकिन ₹75,000 standard deduction के अलावा ज़्यादातर deductions नहीं मिलतीं।
Example
See it in action
On ₹12L income: New regime tax ≈ ₹80,000. Old regime with ₹1.5L (80C) + ₹2L (home loan) + ₹50K (80D) deductions → taxable income ₹8L → tax ≈ ₹65,000. Old regime saves ₹15,000.
हिंदी में₹12L income पर: New regime tax ≈ ₹80,000। Old regime में 80C + home loan + 80D deductions से taxable income ₹8L → tax ≈ ₹65,000। Old regime ₹15,000 बचाता है।
Key takeaway
Remember this
If total deductions exceed ₹3.75 lakh, old regime usually wins. Below that, new regime is simpler and cheaper.
The new tax regime isn't always better — if you have significant deductions (home loan, 80C, HRA), the old regime may save you more tax.
हिंदी मेंअगर total deductions ₹3.75 lakh से ज़्यादा हैं तो old regime बेहतर। उससे कम हैं तो new regime simple और सस्ता।
Concept
Plan your 80C investments early in the year — don't rush into bad products in March.
Section 80C allows deductions up to ₹1.5 lakh from taxable income for specified investments: ELSS (3-year lock-in, equity exposure), PPF (15-year, safe, tax-free), EPF (employer deducts automatically), NSC, SCSS, life insurance premiums, tuition fees, and home loan principal.
हिंदी में80C में ₹1.5 lakh तक deduction मिलती है: ELSS (3 साल lock-in), PPF (15 साल, safe, tax-free), EPF, NSC, life insurance premium, tuition fees, home loan principal।
Example
See it in action
If you're in the 30% tax bracket, ₹1.5L in 80C saves ₹46,800 in tax (including cess). An ELSS fund earning 12% means you're effectively getting 12% returns + ₹46,800 tax savings — a double benefit.
हिंदी में30% tax bracket में ₹1.5L 80C investment से ₹46,800 tax बचता है। ELSS fund 12% return दे तो return + tax savings — double benefit।
Key takeaway
Remember this
ELSS has the shortest lock-in (3 years) among 80C options and gives equity market exposure — best for young investors.
Section 80C isn't just about insurance — ELSS, PPF, EPF, home loan principal, and even tuition fees all count toward the ₹1.5 lakh limit.
हिंदी मेंELSS का lock-in सबसे कम (3 साल) है और equity market exposure मिलता है — young investors के लिए best।
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