Tax Planning Guide
Master tax planning in India. Learn about income tax, deductions, exemptions, and strategies to minimize your tax liability legally.
Pro Tip
Start tax planning in April, not March! Spread your investments throughout the year for better returns and avoid last-minute rushed decisions. A well-planned tax strategy can save you ₹2+ lakh annually.
Frequently Asked Questions
Should I choose old or new tax regime?
Choose old regime if your total deductions (80C, 80D, HRA, home loan interest) exceed ₹2.5 lakh. New regime is better if you have minimal deductions and want simplicity. Calculate tax under both regimes before deciding. You can switch between regimes every year if you have business income.
Can I claim both HRA and home loan benefits?
Yes, you can claim both if you live in a rented house and own a property elsewhere. HRA exemption for rented house and home loan interest (Section 24b) + principal (Section 80C) for owned property. Both properties should be in different cities for better justification.
What happens if I miss the ITR filing deadline?
You can file a belated return till 31st December with a penalty of ₹5,000 (₹1,000 if income below ₹5 lakh). However, you cannot carry forward losses, and may face issues in loan applications, visa processing, and refund delays. Always file before the deadline.
Is interest on education loan tax-free forever?
No, you can claim deduction on education loan interest for maximum 8 years starting from the year you begin repayment. There is no upper limit on the amount. The loan must be for higher education (after Class 12) for self, spouse, or children from a financial institution.
Can I claim 80C deduction for my parents insurance?
No, Section 80C deduction is only for insurance premium paid for self, spouse, and dependent children. However, you can claim Section 80D deduction (up to ₹50,000) for health insurance premium paid for parents above 60 years.
Do I need to pay advance tax on capital gains?
Yes, if your total tax liability (including capital gains) exceeds ₹10,000, you must pay advance tax. For capital gains arising after 15th March, you can pay the entire tax by 31st March without interest. Use the advance tax calculator on income tax portal.