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WealthVizioCrunching the numbers…
Pay every rupee you owe — not a rupee more. A no-nonsense guide to Old vs New regime, every Section 80 deduction, capital gains, and the year-end moves that move the needle.
Effective rate at ₹12L (New)
0%
After 87A rebate
Max 80C deduction
₹1.5L
+₹50K via NPS
Equity LTCG exempt
₹1.25L
Per year, per PAN
Standard deduction
₹75K
Salaried, New regime
From FY 2025-26 the New regime is the default. The Old regime survives only if your deductions are high enough to beat the larger standard deduction + lower slabs of the New regime.
Deduction-heavy
Better if 80C + 80D + HRA + 24(b) total > ₹4L
| Income | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Default · 87A rebate up to ₹12L
Better for incomes ₹7L – ₹15L with thin deductions
| Income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Feature | Old | New |
|---|---|---|
| Standard deduction (salaried) | ₹50,000 | ₹75,000 |
| 87A rebate threshold | Up to ₹5L (₹12.5K rebate) | Up to ₹12L (₹60K rebate) |
| Section 80C / 80D / HRA / 24(b) | Available | Not available |
| Employer NPS 80CCD(2) | Up to 10% basic+DA | Up to 14% basic+DA |
| Family pension deduction | ₹15,000 | ₹25,000 |
| LTA, food coupons, leave encashment | Available | Limited / NA |
| Switching | Once if business income, every year for salaried | Default — opt out via Form 10-IEA |
Slab rates apply progressively — you only pay the marked rate on income within that band, not on the entire amount. The 87A rebate erases the final tax bill if total taxable income stays within the threshold.
| Income slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Surcharge · Above ₹50L
10%
Surcharge · Above ₹1Cr
15%
Surcharge · Above ₹2Cr
25%
Surcharge · Above ₹5Cr
37% (Old) · 25% (New)
Plus a flat 4% Health & Education Cess on tax + surcharge. Marginal-relief rules apply where surcharge increase exceeds the income increase that triggered it.
The Old regime's whole pitch is in here. Even on the New regime, two players survive — employer NPS (80CCD(2)) and standard deduction. Both still count.
All of these compete for the same ₹1,50,000 cap. Stack the ones with the best expected after-tax return for your risk profile — typically: EPF (auto) → ELSS → PPF for the conservative tail.
EPF (Employees' Provident Fund)
Your 12% basic contribution counts towards 80C. Employer's matching share doesn't (it's already tax-exempt). Interest tax-free up to ₹2.5L p.a. employee contribution.
PPF (Public Provident Fund)
15-year, EEE-status (exempt at contribution, growth and withdrawal). Currently ~7.1% p.a. Maximum ₹1.5L per PAN per year. Compound interest in a sovereign instrument — the safest equity-free anchor.
ELSS Mutual Funds
Equity-linked saving scheme — diversified equity MFs with the lowest 80C lock-in. Historically the highest expected return after tax. SIP through the year for rupee-cost averaging.
Life insurance premium
Only counts if sum assured ≥ 10× annual premium (for policies issued after 1 Apr 2012). Prefer pure term insurance over endowment/ULIP — the 80C utility is identical and term protection is far cheaper per ₹ of cover.
NSC / Tax-saving FD
5-year deposits with banks (eligible) or post offices (NSC). Interest is taxable (and NSC interest is reinvested, re-counting under 80C until maturity). Better for ultra-conservative savers.
Sukanya Samriddhi Yojana
Open in the name of a girl child below 10. Currently ~8.2% p.a. EEE status. Locked till the girl turns 21 (partial withdrawal at 18).
Home loan principal repayment
Principal portion of EMIs on a self-occupied house qualifies under 80C. Stamp duty + registration in the year of purchase also counts.
Children's tuition fees
Up to two children, full-time education in India, paid to a recognised school/college/university. Tuition only — not transport, hostel or donation.
Holding-period thresholds and rate slabs flipped on 23 July 2024. The table below is the post-amendment regime — it's the version you'll use for FY 2024-25 sales onwards.
| Asset | Short-term if held | STCG rate | LTCG rate | Notes |
|---|---|---|---|---|
| Listed equity / equity MFs | ≤ 12 months | 20% | 12.5% on gains above ₹1.25L/year | Effective from 23 Jul 2024. STT-paid trades only. |
| Debt MFs (units bought from 1 Apr 2023) | Any | Slab rate | Slab rate (no indexation) | Loss of LTCG concessional rate post-2023 amendment. |
| Debt MFs (units bought before 1 Apr 2023) | ≤ 24 months | Slab rate | 12.5% without indexation | Grandfathered. Sells trigger LTCG only after 24-month holding. |
| Residential property | ≤ 24 months | Slab rate | 12.5% without indexation OR 20% with indexation | Choice given by Finance (No. 2) Act 2024 for properties acquired before 23 Jul 2024. |
| Unlisted shares | ≤ 24 months | Slab rate | 12.5% | Includes private company / startup ESOPs after exercise. |
| Gold / Silver / Jewelry | ≤ 24 months | Slab rate | 12.5% without indexation | Sovereign Gold Bonds: LTCG exempt if held till maturity (8 years). |
| Virtual digital assets (crypto, NFT) | N/A | 30% flat | 30% flat | No deductions except cost. 1% TDS on transfers above ₹10K (₹50K small). |
Sell residential property → buy another within 2 years (or build within 3) to defer LTCG entirely. 54F extends this to gains on any long-term asset, provided you buy ONE house.
Park up to ₹50L of LTCG in 54EC bonds within 6 months. 5-year lock-in, ~5.25% interest (taxable). Useful when you don't want to reinvest in real estate.
Every year, sell enough equity/MF units to realise ~₹1.25L of LTCG (tax-free), then re-enter. Resets your cost base and avoids a single-year tax cliff later.
National Pension System contributions land across three sections that don't share a cap. Done right, an employee earning ₹15L can claim deductions north of ₹2.5L on NPS alone.
Up to ₹1.5L (within 80C)
10% of salary (basic+DA) for salaried, 20% of gross for self-employed. Counts inside the ₹1.5L 80C cap.
Old regime only
₹50,000 extra
Over and above the ₹1.5L cap. Pure tax saving — typically the most efficient way to claim an extra ₹15K of tax.
Old regime only
Up to 14% of basic+DA
Doesn't reduce take-home if structured into CTC. Most underused benefit in the New regime — ask HR to enable corporate NPS.
Both regimes
Ten moves that almost always pay for themselves. Tick them off — progress is saved on this device.
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Each of these is worth ₹10,000 – ₹1,00,000+ for the average salaried filer. We've seen every one of them in actual ITRs.
Your deduction profile changes every year — new home loan, child's tuition, parents turning 60. Re-run both regimes during ITR. Salaried can switch every year by simply choosing the regime in ITR.
80CCD(2) is one of the few deductions still available in the new regime. If your employer doesn't already structure CTC with NPS, ask HR — the deduction can be a clean 10–14% of basic.
Legally allowed but heavily scrutinised. You need actual rent transfer, registered rent agreement, and the recipient must report the rent as income. A casual cash arrangement will fail an assessment.
Equity LTCG up to ₹1.25L per year is tax-free. Carrying years of unrealised gains lets the figure balloon — taxed at 12.5% when you eventually sell. Harvest annually to reset cost base.
Tax saved in year 1 doesn't compensate for the 5-7% trail commission baked into premiums. Use term + ELSS instead — same 80C utility, dramatically better outcome over 15 years.
The Annual Information Statement now captures dividends, MF redemptions, foreign remittances, high-value transactions. Mismatch with your ITR triggers automated notices under 143(1).
80C is capped at ₹1.5L combined. If your PPF/EPF/ELSS already cross that, additional home loan principal pre-payments give zero extra deduction — invest elsewhere instead.
If TDS doesn't cover ≥ 90% of your liability, sections 234B/234C interest kick in. Common for freelancers, capital-gains earners and people with significant interest income.
Questions we get on the advisor chat, week after week. Bookmark this section.
The acronyms HR throws at you in January. Now demystified.
AY (Assessment Year)
The year you file your return for the previous financial year. FY 2025-26 income is filed in AY 2026-27.
FY (Financial Year)
1 April – 31 March. The year you actually earn the income.
AIS
Annual Information Statement — the income-tax portal's consolidated view of your dividends, interest, MF redemptions, high-value transactions.
Form 26AS
TDS / TCS statement showing tax deducted on your behalf by employers, banks, buyers of property.
TDS
Tax Deducted at Source — pay-as-you-earn withholding on salary, interest, professional fees, property transactions.
87A Rebate
Rebate that zeros out tax for incomes up to ₹5L (Old) or ₹12L (New, FY 2025-26).
ELSS
Equity Linked Saving Scheme — diversified equity MF with a 3-year lock-in that qualifies under Section 80C.
Standard deduction
Flat reduction in salary income — ₹50,000 (Old) or ₹75,000 (New) for salaried employees.
Surcharge
Additional tax on incomes above ₹50L (10%), ₹1Cr (15%), ₹2Cr (25%), ₹5Cr (37% Old / 25% New).
Cess
4% Health & Education Cess levied on tax + surcharge — a hidden 4% mark-up on your liability.
STCG / LTCG
Short-Term / Long-Term Capital Gains — depends on the asset's holding period and asset class.
DTAA
Double Taxation Avoidance Agreement — bilateral treaty that lets you offset tax paid abroad against your Indian liability.
Take what you just read and apply it to your own salary, deductions and investments.
Compare Old vs New regime in seconds with your actual deductions.
OpenSee how a CTC bump translates to in-hand after tax under each regime.
OpenPlan EPF, NPS and PPF contributions to retire on your terms.
OpenVisualise EMI, interest savings and 24(b)/80C tax benefits.
OpenShare your salary structure once and our AI advisor picks the regime, fills your 80C basket, and surfaces deductions you haven't claimed yet.