To save tax legally in India, choose between the old and new regimes each year, claim all eligible deductions and business expenses, use the Section 87A rebate (income up to ₹12 lakh effectively pays no tax under the new regime), keep proper records and file your return on time. The Income-tax Act 2025 applies from 1 April 2026.
Key takeaways
- Compare old and new regimes every year.
- Income up to ₹12 lakh is effectively nil-tax under the new regime after rebate (excluding special-rate income).
- Businesses should claim genuine expenses with documents.
- File on time and avoid mismatches with AIS and 26AS.
01Choose the right regime
The new regime has lower slab rates and few deductions. The old regime allows deductions such as 80C, 80D and home loan interest. Calculate both with your real numbers each year, because the best choice changes with income and investments.
02Deductions and savings to check
- Section 80C investments and 80D health insurance (old regime)
- Home loan interest and HRA (old regime)
- Standard deduction for salaried people
- Business expenses, depreciation and professional fees
- Employer NPS contribution
Under the new regime most of the above do not apply, so do not invest only for tax. Choose investments for your goals.
03For business owners
- Keep invoices and bank proof for every expense
- Claim depreciation on assets correctly
- Consider presumptive taxation if you qualify
- Plan advance tax to avoid interest
Claiming expenses without proof invites notices. Maintain records for at least the period required by law.
04Filing tips
Non-audit business cases under ITR-3 and ITR-4 are due on 31 August; others are due on 31 July. A revised return can be filed within 12 months. See our income tax return filing service.
Frequently asked questions
Which regime is better, old or new?
It depends on your deductions. Compare both with your actual figures.
What is the Section 87A rebate?
A rebate that makes tax nil up to a specified income. For the new regime it effectively makes income up to ₹12 lakh tax-free, excluding special-rate incomes.
Can I revise my return?
Yes, within 12 months as per the current rules.
Do I need a CA to file?
Not always, but business income, capital gains and multiple incomes benefit from professional review.
This guide is general information based on Indian law as understood in October 2026. Rules, fees and due dates change, so confirm current requirements with a qualified Chartered Accountant before you act. It is not professional advice.