Tax Planning and Consultancy
Tax planning means using the choices the law gives you so you pay the right tax and not a rupee more. For most people in tax year 2026-27 it starts with one choice: the old regime or the new one. We work out which is better for you, with the actual numbers.
What it is
Tax planning is done before the year ends, not in July when the return is due. It covers which tax regime to pick, how salary is structured, which deductions are worth claiming, when to sell an asset and how much advance tax to pay each quarter.
From 1 April 2026, the Income-tax Act, 2025 replaces the 1961 Act for tax year 2026-27 onwards. The slab rates have not changed, but many section and form numbers have. Form 12BB, for example, is now Form 124, and Form 16 is now Form 130. Returns for FY 2025-26 are still filed under the 1961 Act on the Income Tax e-filing portal.
Planning is different from evasion. Every rupee we save you comes from a deduction, exemption or choice the law allows, backed by a document. Inflated rent receipts or claims you cannot prove are not planning, and we do not offer them.
Old vs new regime at a glance
| Point | New regime (default) | Old regime |
|---|---|---|
| Slab rates | Nil up to ₹4 lakh; 5% to ₹8 lakh; 10% to ₹12 lakh; 15% to ₹16 lakh; 20% to ₹20 lakh; 25% to ₹24 lakh; 30% above | Nil up to ₹2.5 lakh; 5% to ₹5 lakh; 20% to ₹10 lakh; 30% above |
| Standard deduction (salary) | ₹75,000 | ₹50,000 |
| Rebate | Up to ₹60,000; income up to ₹12 lakh effectively tax-free | Up to ₹12,500; income up to ₹5 lakh |
| 80C basket, health insurance, home-loan interest, HRA, LTA | Not allowed | Allowed (80C up to ₹1.5 lakh; home-loan interest up to ₹2 lakh) |
| Employer NPS contribution | Up to 14% of salary | Up to 10% of salary |
A higher income does not automatically make the old regime better. It depends on how much you can actually claim. Take a salaried engineer in Faridabad who pays rent but has no home loan. HRA here is capped at 40% of salary, and once you set that against the new regime’s lower slabs and bigger standard deduction, the answer can go either way. In practice, we only know after running both numbers.
Who it applies to
Salaried employees
You can pick a regime every year while filing your return by the due date. We compare both for your salary, rent, home loan and investments before you declare to your employer.
Professionals and business owners
With business or professional income, opting out of the new regime needs Form 10-IEA before the due date, and returning to the new regime is allowed only once. Here is the catch: a consultant who moved to the old regime years ago for a home loan, and has since repaid it, gets just one chance to come back.
Companies, LLPs and firms
Firms and LLPs pay 30%. A domestic company can opt for the 22% rate under Section 115BAA. We look at the business structure, partner or director remuneration, and when expenses fall.
Why it matters
Pick the regime with numbers
Two people on the same salary can pay very different tax once rent and home-loan interest come in. A side-by-side calculation settles it.
File on time to keep both options
If you file after the due date without business income, the old regime is not available. Planning in time keeps every option open.
Pay advance tax on schedule
Where tax after TDS is ₹10,000 or more, advance tax is due in four instalments. Short payment attracts interest at 1% a month.
Documents required
Income details
- Salary slips and the last Form 16 (now Form 130)
- Annual tax statement (Form 26AS, now Form 168) and AIS
- Business or professional receipts and expenses
- Capital gains statements from brokers or sale deeds
Deductions and payments
- PPF, ELSS, life insurance and NPS statements
- Health insurance premium receipts
- Home-loan interest certificate
- Rent receipts and landlord’s PAN, where needed
Previous filings
- Last two years’ income tax returns
- Advance tax and self-assessment tax challans
- Any Form 10-IEA filed earlier
How it works
Map your income for the year
We list every source of income for the year. That includes salary, rent, business, interest, dividends and expected capital gains, with realistic figures for the full year. A planned property or share sale gets its own capital gains working.
Compute tax under both regimes
We calculate tax both ways with the deductions you can actually prove, and show you the difference in rupees.
Close the gaps that pay off
Where the old regime wins, we point to the deductions still open. Where the new regime wins, we look at employer NPS and salary structure, which ties in with your employer’s payroll set-up.
Set the advance tax schedule
We fix the instalments for 15 June, 15 September, 15 December and 15 March so interest does not build up.
Carry it into the return
The plan feeds straight into your income tax return, with the regime choice and every claim backed by documents.
Timelines
Advance tax instalments
15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Presumptive taxpayers under Sections 44AD and 44ADA pay 100% by 15 March.
Return due dates (FY 2025-26)
31 July 2026 for ITR-1 and ITR-2, 31 August 2026 for non-audit business cases, and 21 November 2026 for tax-audit cases after the CBDT extension.
Late and revised returns
A belated return for FY 2025-26 can be filed until 31 December 2026, and a revised return until 31 March 2027.
What happens if you plan too late
Interest on advance tax
Missed or short instalments cost 1% a month under Sections 234B and 234C. Under the 2025 Act these are Sections 424 and 425. Part of a month counts as a full month.
Lost regime choice
Filing after the due date without business income means the new regime applies, even if the old one would have saved you tax.
Late fee on the return
Section 234F: ₹5,000, or ₹1,000 if total income is up to ₹5 lakh. Losses from business and capital gains cannot be carried forward in a belated return.
Frequently asked questions
Which is better for me, the old or the new tax regime?
It depends on what you can claim. The new regime has lower slabs, a ₹75,000 standard deduction and a rebate that makes income up to ₹12 lakh effectively tax-free. The old regime wins only if your deductions, such as 80C up to ₹1.5 lakh, home-loan interest up to ₹2 lakh, HRA and health insurance, are large enough to beat those lower rates. We run both calculations and show you the answer in rupees.
Can a salaried person switch regimes every year?
Yes. If you have no business or professional income, you can choose the regime each year directly in your return, as long as it is filed by the due date under Section 139(1). Your choice with the employer only decides monthly TDS; the return is where it is final. Filing late takes the old regime off the table, so timely filing keeps the choice yours.
I have business income. How often can I change regime?
To opt out of the new regime you file Form 10-IEA before the return due date. After that, coming back to the new regime is allowed only once in your lifetime, per the Income Tax Department’s guidance. So the decision deserves a proper multi-year look at your income and deductions. We plan it with you before the form is filed, so you are not locked into the wrong option.
Is income up to ₹12 lakh really tax-free?
Yes, under the new regime, for resident individuals with normal income. The rebate of up to ₹60,000 wipes out tax on total income up to ₹12 lakh, and a salaried person also gets the ₹75,000 standard deduction on top. Income taxed at special rates, such as certain capital gains, is treated separately. If you are close to the limit, we check the details so there are no surprises at filing.
Which deductions still work under the new regime?
Only a handful. The employer’s NPS contribution is deductible up to 14% of salary in the new regime, against 10% in the old one. The standard deduction of ₹75,000 and a family pension deduction are also available. Most others, such as 80C, health insurance, home-loan interest on a self-occupied house and HRA, are not. If your employer offers it, routing part of your salary into employer NPS is worth a conversation.
Do I have to pay advance tax?
Yes, if your tax for the year after TDS and TCS is ₹10,000 or more. It is paid in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Resident senior citizens without business income are exempt. Short payment attracts 1% a month interest, so a quick mid-year estimate keeps you safely within the rules.
How much HRA can I claim if I live in Faridabad?
HRA exemption is the lowest of three figures: actual HRA received, rent paid minus 10% of salary, and 40% of salary for cities like Faridabad and Gurugram. The 50% rate applies only to eight cities, including Delhi, Mumbai, Bengaluru and Pune. HRA is allowed only in the old regime. If you pay rent in Faridabad, we work out whether that claim alone tips the balance.
Is tax planning legal, or is it a grey area?
Tax planning is fully legal when every claim is real and documented. Choosing a regime, investing in eligible schemes, timing a sale or structuring salary are choices the law gives you. Fake rent receipts or invented donations are misreporting, and they bring penalty proceedings on top of the tax and interest. An HRA claim needs genuine rent receipts; a home-loan claim needs the lender’s interest certificate. We plan only with claims you can prove, so your return holds up if questioned.
What changes for tax year 2026-27 under the new Act?
Slab rates stay the same, but the law is now the Income-tax Act, 2025 and many numbers change. Form 16 becomes Form 130, Form 12BB becomes Form 124 and Form 26AS becomes Form 168. Some salary perquisite limits have gone up, such as tax-free meals at ₹200 a meal and children’s education allowance at ₹3,000 a month. We update your plan for these changes from the start of the year.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee for tax planning itself. Late filing of the return attracts the Section 234F fee of ₹1,000 or ₹5,000, and short advance tax carries interest at 1% a month.
Ready to begin?
Send us last year’s return and this year’s salary or business figures, and we will show you, in rupees, which regime and which claims work best for tax year 2026-27.