Smart Money Journal: Your Guide to Smart Finance & Investing

Tax planning is essential at the start of the financial year . Whether you are a salaried employee , self-employed professional , or business owner , being aware of tax-saving opportunities can make a significant difference in your annual tax liability. Here’s a look at some of the most effective tax-saving strategies available in FY 2025-26 . 1️⃣ Understand Your Tax Regime: Old vs New The Budget 2025 has retained the new tax regime with lower tax slabs . However, the new scheme doesn’t allow most exemptions and deductions, making it simpler but less flexible for tax savings. Here’s a quick comparison: Old Tax Regime : Allows deductions such as 80C (for investments), 80D (health insurance), HRA (House Rent Allowance), etc. New Tax Regime : Offers lower tax rates , but doesn’t allow exemptions/deductions, which may be beneficial for people without significant deductions to claim. Tip : Calculate your taxes under both regimes to choose the one that provides the most tax sa...

The new tax regime offers a simplified approach by reducing tax rates and eliminating the need for tax-saving investments . However, even without deductions like Section 80C or HRA , there are still ways to ensure you save taxes while following this new structure. Here’s a breakdown of the most effective tax-saving strategies for salaried employees who opt for the new tax regime in 2025 : 1️⃣ Understand the New Tax Slabs and Benefits Under the new tax regime , the income tax rates are lower as compared to the old tax regime . Here’s a quick look at the tax slabs for FY 2025-26: Income Tax Rate Up to ₹2.5 Lakh Nil ₹2.5 Lakh to ₹5 Lakh 5% ₹5 Lakh to ₹10 Lakh 20% Above ₹10 Lakh 30% Benefit : By choosing the new tax regime , you can save more if your total income falls under the higher tax slabs of the old regime . But, do keep in mind that you won’t be able to claim deductions and exemptions available under the old regime . Tip : Evaluate both the n...