Collect income
Add salary, business income, FD interest, savings interest, rent, capital gains, and other income. Match totals with Form 16, AIS, Form 26AS, bank statements, and broker reports.
Finance Guidance
Income Tax Planning Guide for India
Understand income tax planning step by step: income, deductions, 80C, 80CCD, 80D, HRA, TDS, old vs new regime, and which calculator to use before filing.
Popular Income Tax Searches Covered
Use this page as a quick map for common income tax deduction, exemption, rebate, and TDS keywords.
80C deduction limit80CCD 1B NPS deduction80CCD 2 employer NPS80D health insurance deductionHRA exemption calculator80GG rent deductionhome loan interest 24b80E education loan interest80G donation deductionTDS on FD interestold vs new tax regimeincome tax calculator India
5-Step Tax Planning Flow
Click each step to see what to check before you calculate tax.
Income Tax Sections and Keywords
Commonly searched sections users look for while planning salary, deductions, loans, rent, and investments.
Tax-saving investments
Common old-regime deduction bucket for PPF, ELSS, life insurance premium, NSC, EPF, SSY, home loan principal, and stamp duty.
Max amount / benefitUp to Rs 1.5 lakh deduction within the combined 80C/80CCC/80CCD(1) limit.
Who is eligible?Individuals and HUFs using the old tax regime, subject to eligible investments/payments and proof.
Example storyAnanya invests Rs 1 lakh in PPF and pays Rs 50,000 life insurance premium. Her 80C bucket reaches Rs 1.5 lakh, so she can test whether the old regime beats the new regime.
Old Regime vs New Regime Checklist
Use this practical order before making payroll declarations or filing ITR.
How to plan income tax in simple words
Start with total income, then separate taxable income from deductions and exemptions. Salary, FD interest, rent, business income, capital gains, and other income can all affect the final tax. After that, compare old regime and new regime.
Old regime planning usually depends on deductions such as 80C, 80CCD(1B), 80D, HRA, home loan interest, education loan interest, 80G donations, and savings or senior citizen interest deductions. New regime planning is simpler, but some employer-side deductions such as employer NPS may still matter depending on facts and current rules.
Documents to keep before tax filing
- Form 16, salary slips, AIS, Form 26AS, and bank interest certificates.
- PPF, EPF, NPS, ELSS, life insurance, NSC, SSY, and other 80C proofs.
- Health insurance premium receipts, rent agreement, rent receipts, landlord PAN, and home loan certificate.
- Donation receipts, education loan interest certificate, capital gains statement, and broker reports.
Disclaimer: This guide is for finance awareness and educational planning only. Income tax law, section numbers, regime rules, limits, forms, and eligibility conditions can change. Verify with the Income Tax Department, your Form 16/AIS, and a qualified tax professional before filing or making investment decisions.
Income Tax Planning FAQs
What is the best way to plan income tax in India?
Start with total income, then check old regime deductions such as 80C, 80CCD, 80D, HRA, home loan interest, education loan interest, donations, and TDS credits. Compare old regime and new regime before filing.
What is Section 80C and how much can I save?
Section 80C is a common old-regime deduction for eligible investments and payments such as PPF, EPF, ELSS, life insurance premium, NSC, SSY, and home loan principal. The common overall deduction cap is Rs 1.5 lakh.
What is the difference between 80CCD(1B) and 80CCD(2)?
80CCD(1B) is generally for an individual's own additional NPS contribution up to Rs 50,000 under the old regime. 80CCD(2) relates to employer contribution to NPS and is salary-linked.
Can I claim HRA and 80C together?
Yes, if you are eligible and using the old regime. HRA exemption is separate from 80C, but it needs rent proof, salary details, HRA received, and city classification.
Is TDS the final tax?
No. TDS is tax deducted in advance. You still need to calculate final tax after adding all income and deductions. Extra tax may be payable or refund may be due.
Should I choose old regime or new regime?
It depends on your deductions, exemptions, income level, salary structure, and eligible credits. Use the income tax calculator and salary calculator before deciding.