If you are a salaried individual, you have likely come across the term HRA in your salary slip. HRA full form is House Rent Allowance, a salary component provided by the employer to help employees cover their residential rental expenses. It forms a significant part of the employee's cost to company (CTC) and plays a significant role in tax planning. House Rent Allowance is a taxable income, the Income Tax Act offers considerable relief to taxpayers. Under Section 10(13A) of the Income Tax Act, a portion of HRA can be claimed as an exemption, effectively reducing the taxable income. However, the HRA exemption is only available under the Old Tax Regime.

The most important part of tax strategy for a salary range of Rs. 20 lakhs, is to determine the most beneficial regime. The new tax regime would be beneficial when the taxpayer has limited tax saving deductions due to relaxed slab rates. On the other hand, old regime is more beneficial when you have more deductions.In a salary level of Rs 20 lakhs, old regime is the most beneficial when you have deductions more than Rs. 7,08,330 under the old regime. Key Deductions and Exemptions in the New Tax RegimeThe following deductions and exemptions are available to a taxpayer opting for the new tax regime:Standard deduction of Rs 75,000 under the new tax regime applicable.Section 80CCD(2): Up to 14% of the basic pay can be claimed as a deduction on employer’s contribution to NPS account .Section 24: Entire interest on Home Loan on the let-out property, can be claimed as a deduction, without any threshold limt.Retirement deductions: Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA)Key Deductions and Exemptions in the Old Tax RegimeUnder the old tax regime there are many components in your salary that are exempted from taxes and deductions Let’s break down some key components of salary that are exempt from taxes:Salary (-) Exemptions = Taxable Salary IncomeTaxable Salary Income (-) Deductions = Net taxable incomeTake a look at them below:Salary ComponentsTaxabilityBasic PayFully-taxableDearness Allowance (DA)Fully-taxableHouse Rent Allowance (HRA)Exemption up to a certain limit. Calculate nowLeave Travel Allowance (LTA)Actual travel ticket expenses exempt for two  trips in 4 years under 10(5). Mobile/ Internet reimbursement Exempt if:– used predominantly for office purposes – proofs/bills submittedChildren’s Education and Hostel allowanceRs 4800 per child (max 2 children)Food ExpensesRs 50 per meal (max 2 meals a day)Annual= Rs 26,400 (50*2*22 days*12 months)Moreover, when you are tax planning for a salary above 20 lakhs, you can get deductions on the following:ParticularsLimitStandard DeductionFlat Rs.

For a salary level of Rs 30 lakhs, the most important part of the tax-saving strategy is the choice of the most beneficial regime. The new tax regime provides relaxed slab rates and limited deductions whereas the old tax regime has a variety of tax deductions with less beneficial slab rates.When you have deductions under the old regime more than Rs 8 lakhs, then the old regime is the most beneficial. Else, it is better to choose the new regime.Key Tax Deductions under the New RegimeStandard Deduction of Rs. 75,000 is available under the new regime.Section 80CCD(2) allows deduction for contributions made by employers in the National Pension Scheme (NPS). Up to 14% of the basic pay can be claimed as a deduction under the new regime.Under section 24, home loan interest due during the financial year for the let out property - can be claimed as a deduction.

For a salary income of Rs. 1 Crore, opting for the right tax regime is important to maximise tax savings. For a taxpayer having significant deductions and exemptions to claim, the old tax regime would be beneficial. However, opting for the new tax regime would be better where the taxpayer do not have much deductions and exemptions to claim.To save tax on Rs. 1 Crore income, the old tax regime would be beneficial if the overall deductions & exemptions to claim exceed Rs.

The government proposed some major tax reforms by introducing tax rebates on an income up to ₹7 lakhs under the new tax regime. This means that taxpayers who have an income below ₹7 lakhs will not have to pay any tax at all if they choose the new tax regime.  Before filing your income tax return this year, let us understand how you can save tax on your salary with an example. An income of Rs. 7 lakhs earned in FY 2025-26 will have Zero tax liability due to increased rebate, as it is less than Rs. 12 lakhs. Key Takeaways - Tax Saving Options for Rs. 7 lakh SalaryIt is always recommended to choose new tax regime for a salary of Rs.

For FY 2025-26, taxpayers earning income up to Rs. 12 lakh can enjoy benefit of zero tax liability under the new tax regime. This is due to relaxed tax slabs and tax rebate of up to Rs. 60,000 under Section 87A. However, taxpayers earning slightly above Rs.

For a salary range of Rs 50 lakh, the most important step in the tax strategy is determining the most beneficial regime. The new regime remains the most beneficial for taxpayer with limited deductions, whereas the old regime favours those who have a lot of tax saving deductions.The old tax regime remains the most beneficial when you have a tax deduction of more than Rs. 8 lakhs.Key Deductions under the New Tax RegimeStandard Deduction: Rs. 75,000 of standard deduction is available under the new regime for all salary levels.Section 80CCD(2): Up to 14% of the basic salary can be claimed as a deduction on employer's contribution to NPS.Section 24: Entire interest due for the financial year can be claimed as a deduction on home loan interest paid on a let out property.Retirement Benefits: Settlements like gratuity are leave encashment are also exempt under the new regime, subject to ceiling limits.Key Deductions under the Old Tax RegimeUnder the old tax regime there are many components in your salary that are exempted from taxes and deductions Let’s break down some key components of salary that are exempt from taxes:Salary (-) Exemptions = Taxable Salary IncomeTaxable Salary Income (-) Deductions = Net taxable incomeTake a look at them below:Salary ComponentsTaxabilityBasic PayFully-taxableDearness Allowance (DA)Fully-taxableHouse Rent Allowance (HRA)Exemption up to a certain limit.Leave Travel Allowance (LTA)Actual travel ticket expenses exempt for two  trips in 4 years under 10(5).Mobile/ Internet reimbursement Exempt if:– used predominantly for office purposes – proofs/bills submittedChildren’s Education and Hostel allowanceRs 4800 per child (max 2 children)Food ExpensesRs 50 per meal (max 2 meals a day)Annual= Rs 26,400 (50*2*22 days*12 months)Moreover, when you are tax planning for a salary above 20 lakhs, you can get deductions on the following:ParticularsLimitStandard deduction Rs. 50,000 under the old regime.Paying health insurance policy premium (Section 80D)Self, your spouse, and your dependent children: Rs 25,000 (Rs 50,000 if aged 60 and above)Parents: Rs 25,000 (Rs 50,000 if aged 60 and above)Opting for an education loan (Section 80E)Interest deduction for 8 years from the year of repayment of loan taken for the higher education of yourself, your spouse, dependent children, or a student of whom you are the legal guardian.Donating to charity (Section 80G)50% or 100% of the eligible amount.Investing in tax saving instruments (Section 80C)Tax benefit of Rs.1,50,000 per year.

For a salary range of Rs 15 lakhs, the most important part of the tax strategy is to determine the most beneficial regime. The new tax regime offers limited deductions with relaxed slab rates, whereas the old regime offers a pleathora of deductions with tighter slab rates.The old tax regime becomes more beneficial only if the taxpayer claims deductions exceeding Rs. 5,43,750.Key Deductions under the New Tax RegimeStandard Deduction: Rs. 75,000 of flat standard deduction is available against salary income under the new regime.Section 80CCD(2): Employer's contribution to NPS can be claimed as a deduction, up to 14% of the basic pay of the employee.Section 24: Entire interest paid on home loan of a let out property can be claimed as a deduction, without any threshold limit.Retirement Benefits: Gratuity, leave encashment, and other retirement benefits are eligible for exemption under the new regime, subject to ceiling limits.Key Deductions under the Old Tax RegimeUnder the old tax regime, there are various exemptions and deductions available, and they are described below.1. ExemptionsYou can structue your CTC in such a manner that you can optimize your tax outlflow under the old regime. Salary ComponentTaxabilityBasic Fully-taxableDearness Allowance Fully-taxableHouse Rent Allowance (HRA)Exempt up to a certain limit. Leave Travel Allowance (LTA)Actual travel ticket expenses are exempt for two trips in 4 years under 10(5).Mobile/ Internet reimbursement Exempt if:– used predominantly for office purposes – proofs/bills submittedChildren's Education and Hostel AllowanceRs  1200 per child (max 2 children)FoodRs 50 per meal (max 2 meals a day)Annual = Rs 26,400 (50*2*22 days*12 months)Professional TaxGenerally Rs 2,400 (Varies from state to state)2.

The ITR filing process gets complicated based on residential status, nature of income earned, and the ITR type chosen. You can complete the ITR filing process online through Income Tax Portal. Alternatively, you can file ITR using the offline utility and uploading it on the Income Tax portal.  Simple Steps to file ITR OnlineYou can file your ITR following these simple steps:Step-1: Login to the Income Tax PortalStep-2: Go to ‘File Income Tax Return’Step-3: Select Tax yearStep-4: Select 'Filing Status"Step-5: Select ‘ITR Type’Step-6: Select reason for filing the returnStep-7: Validate the detailsStep-8: E-verify the returnWhat is ITR?ITR stands for Income Tax Return, in which the taxpayer discloses all the details related to his income, assets, taxes, losses, refunds, etc. for the relevant tax year.Documents Required for Filing ITRBefore filing ITR, there are a few documents and details that you need to gather in order to file ITR.PAN and AadhaarBank StatementsForm 16Donation receiptsStock trading statements from the broker platformInsurance policy paid receipts related to life and healthBank account information linked to PANAadhaar registered mobile number for e-verifying the returnInterest certificates from banksHow to File ITR Online?The step-by-step guide on how to file ITR online for FY 2025-26 through the Income Tax Portal:Step 1: Log in to the Income Tax PortalLog in to the income tax portal by entering your PAN and password. Step 2: Select the relevant Tax Year and mode of filing ITRSelect ‘Tax Year’ as ‘AY 2026-27’ if you file for FY 2025-26 and click on Online, then "Continue".

Form 26AS is a statement that provides details of all TDS or TCS, advance tax/self-assessment tax paid, and high-value transactions of a taxpayer during the financial year.How to Download Form 26AS Online 2026?Step-1: Login to the Income Tax Portal,Step-2: Go to e-file > Income Tax Returns > View form 26AS. You will be redirected to TRACES website. Step-3: Click on ‘Confirm’ after reading the disclaimer. You will be redirected to TDS-CPC portal.Step-4: Check on the 'Agree' check box and click 'Proceed'.  Step-5: Click ‘View Tax Credit (Form 26AS/Annual Tax Statement)’Step-6: Select the ‘Assessment Year’ and ‘View type’ (HTML or Text)Step-7: Click ‘View/Download’ and then ‘Export as PDF’.What is Form 26AS?Form 26AS is the annual tax statement provided by the Income Tax Department to every taxpayer. It is a consolidated statement which contains all the high value transactions, TDS deducted, TCS collected, corresponding income, refund issued, etc.The scope of the statement has now been expanded to include details of foreign remittances, mutual funds purchases, dividends, refund details, turnover as per GST records, etc.Form 26AS is considered an important and convenient document for tax filing, as it contains most of the required information at one place.Income tax filing can be done without Form 26AS, since it is not a mandatory document for tax filing. But it is highly recommended to have Form 26AS handy while filing the returns, as chances of getting an Income Tax notice is high, even if a miniscule transaction reflected in the form is missed out in the returns.Information Available on Form 26ASForm 26AS is a statement that shows the below information:Details of tax deducted at sourceDetails of tax collected sourceAdvance tax paid by the taxpayerSelf-assessment tax paymentsRegular assessment tax deposited by the taxpayers (PAN holders)Details of income tax refund received by you during the financial year Details of the high-value transactions regarding shares, mutual funds, etc.Details of tax deducted on sale of immovable propertyDetails of TDS defaults (after processing TDS return) made during the yearTurnover details reported in GSTR-3BDetails of specified financial transactionsPending and completed income-tax proceedingsStructure and Parts of Form 26AS PART-I Details of Tax Deducted at SourceTDS on salary, business, profession, interest income etc., shall be reported herePART-II Details of Tax Deducted at Source for 15G/15HTDS on which no TDS is made because of Form 15G/15H due to income being less than the basic exemption limit. Mainly applicable for senior citizen taxpayersPART-III Details of Transactions under Proviso to section 194B/First Proviso to sub-section (1) of section 194R/ Proviso to sub-section(1) of section 194STDS made on payment made in kind (car in a lottery, foreign trips for meeting sales targets etc.)PART-IV Details of Tax Deducted at Source u/s 194IA/ 194IB / 194M/ 194S (For Seller/Landlord of Property/Contractors or Professionals/ Seller of Virtual Digital Asset)TDS made on sale of house property/rent payment in excess of Rs. 50,000 per month, payment to a contractor/professional services in excess of Rs.50 lakhs/sale of virtual digital asset (cryptocurrency)PART-V Details of Transactions under Proviso to sub-section(1) of section 194S as per Form-26QE (For Seller of Virtual Digital Asset)PART-VI Details of Tax Collected at SourceTCS made under various sections of 206CPART-VII Details of Paid Refund (For which source is CPC TDS.