As the financial year-end approaches on March 31, 2026, the window for Tax Saving FY 2025-26 investments is closing fast. This year is particularly critical for taxpayers as it serves as the definitive bridge to the full implementation of the Income Tax Act 2025.
Whether you are under the Old Tax Regime or the New Tax Regime, navigating these changes requires precision. Failing to act before the deadline could result in a significant tax outgo that could have been easily avoided with a few strategic moves.
If you have opted for the Old Tax Regime for Tax Saving FY 2025-26, you must exhaust your ₹1.5 Lakh limit under Section 80C. This is the most popular route for salaried individuals in India.
ELSS Mutual Funds (The 3-Year Advantage): Often called the “last-minute savior,” Equity Linked Savings Schemes have the shortest lock-in period (3 years) compared to PPF (15 years) or Insurance (min 5 years). You can start an ELSS investment instantly online even on March 31st.
Public Provident Fund (PPF): If you already have a PPF account, ensure you deposit at least ₹500 to keep the account active. For maximum interest, deposits should be made before the 5th of every month.
Health Insurance (Section 80D): This is a powerful tool for Tax Saving FY 2025-26. You can claim up to ₹25,000 for self/spouse/children and an additional ₹50,000 for senior citizen parents.
Pro-Tip: Don’t forget the ₹5,000 deduction for Preventive Health Check-ups, which is included within the 80D limits.
Tuition Fees: Many parents overlook this—school and university tuition fees for up to two children qualify for deduction under Section 80C.
Under the Income Tax Act 2025, private sector employees finally enjoy parity with government employees regarding the National Pension System (NPS). This is a game-changer for Tax Saving FY 2025-26.
14% NPS Deduction: You can now claim a deduction for employer contributions to your NPS account up to 14% of your Basic + DA (increased from the previous 10%).
New Regime Bonus: This is one of the few deductions still allowed under the New Tax Regime. If your HR department hasn’t updated your CTC structure yet, you must request this change before the final payroll cycle in March.
Additional ₹50,000 (Section 80CCD(1B)): In the Old Regime, you can still claim an extra ₹50,000 over and above the 80C limit by making a voluntary contribution to your NPS Tier-1 account.
The Leave Travel Allowance (LTA) block of 2022-2025 ended on December 31, 2025. For Tax Saving FY 2025-26, you must be aware of the carry-forward rules.
The Rule: If you did not utilize your two eligible trips in the previous 4-year block, you can carry forward one unclaimed trip to the current block (2026-2029).
The Deadline: To claim this carried-forward trip for your Tax Saving FY 2025-26 declarations, you must submit travel proofs (boarding passes and air tickets) to your employer by March 31, 2026.
Warning: LTA exemptions are only valid under the Old Tax Regime.
If you have realized capital gains from the stock market or mutual funds this year, Tax-Loss Harvesting is a sophisticated way to achieve Tax Saving FY 2025-26.
Setting off Losses: Short-term capital losses (STCL) can be set off against both short-term (taxed at 20%) and long-term gains (taxed at 12.5%).
The Deadline: You must sell your underperforming/loss-making stocks before the market closes on March 31, 2026, to realize the loss in your books and lower your tax liability for the year.
When rushing for Tax Saving FY 2025-26, many taxpayers fall into these traps:
Investing in Low-Yield Insurance: Don’t buy “Endowment” or “Money-back” policies just to save tax. Often, the returns don’t even beat inflation.
Missing the Bank Deadline: While online transfers are fast, banks often have a cut-off time on March 31st for issuing investment receipts that count for the current year.
Ignoring the New Regime: Many assume the Old Regime is better. However, with the new ₹12 Lakh zero-tax rebate, the New Regime might actually save you more money without any investment.
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Important Date |
Action Required for Tax Saving FY 2025-26 |
|---|---|
|
March 15, 2026 |
Deadline for the 4th installment of Advance Tax (Avoid 1% monthly interest). |
|
March 31, 2026 |
Last date for Section 80C and 80D investments (ELSS, PPF, LIC). |
|
March 31, 2026 |
Final date to file Updated Returns (ITR-U) for AY 2023-24. |
To ensure your Tax Saving FY 2025-26 is filed correctly, keep these documents ready:
Interest certificate from your Home Loan provider.
Form 16 from your employer.
Investment receipts for ELSS, Life Insurance, and Health Insurance.
Annual Information Statement (AIS) and TIS to verify stock market gains.
Tax planning is not a one-day event; it is a year-long strategy. At Husain A Shujai and Associates, we help Pune’s professionals and businesses navigate the complex transition to the Income Tax Act 2025. Our goal is to ensure that your Tax Saving FY 2025-26 is maximized while remaining 100% compliant.
Stop searching for “CA near me” and start planning with the experts. Visit cahas.in or call us today to secure your financial future.
Keywords: Tax Saving FY 2025-26, Income Tax Act 2025, Save Tax India, Section 80CCD(2) NPS, LTA Block 2026, Tax Loss Harvesting India, CA in Pune.
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