Tax SavingIntermediate

Chapter 8 of 8

Tax Planning Checklist

Month-by-month tax planning so you never scramble.

15 min read Chapter 8

Priya earns ₹12 lakh a year. Every March, she scrambles to make last-minute investments, submits receipts to

HR in a panic, and still somehow ends up paying more tax than she should. Her friend Ramesh, earning nearly

the same salary, pays ₹40,000 less in tax every year — not because he earns less, but because he planned his

taxes in April, not March. A full-year tax plan turns a stressful annual scramble into a calm, automated

process. This chapter is your complete calendar.

Key Tax Documents You Must Know

Form 16:

A TDS certificate issued by your employer after the financial year ends — it shows your total salary, all TDS deducted month by month, and the deductions/exemptions your employer considered. Part A covers TDS; Part B covers salary breakup and deductions.

Form 26AS:

Your annual consolidated tax statement from the Income Tax Department — shows all TDS deducted by all deductors (employer, bank, etc.), advance tax paid, and self-assessment tax. Always cross-check this against your Form 16.

Annual Information Statement (AIS):

A comprehensive statement introduced by the Income Tax Department that shows all financial transactions linked to your PAN — including interest income, dividends, securities transactions, mutual fund purchases, and property transactions. Far more detailed than Form 26AS.

Advance Tax:

Tax paid in instalments during the financial year if your total tax liability exceeds ₹10,000 — due in four tranches (15% by June 15, 45% by September 15, 75% by December 15, 100% by March 15). Missing deadlines incurs interest under Sections 234B and 234C.

Month-by-Month Tax Planning Calendar

April — Regime Choice + Investment Plan

✅ Choose between Old and New Tax Regime — declare to employer via HR portal
✅ Calculate estimated deductions (80C, HRA, home loan, 80D) for the year
✅ Start ELSS SIPs for 80C — spread investments across 12 months, don't wait for March
✅ Review health insurance and upgrade if needed (80D planning)
✅ Check if NPS Tier-1 contributions are set up for 80CCD(1B) benefit

June — First Advance Tax Instalment

✅ If you have freelance/rental/investment income (non-salary), estimate total tax for the year
✅ Pay 15% of estimated tax liability as advance tax by June 15
✅ Start collecting rent receipts if claiming HRA

September — Second Advance Tax + Mid-Year Review

✅ Pay cumulative 45% of estimated annual tax by September 15
✅ Review 80C investments year-to-date — are you on track to hit ₹1.5L?
✅ Check if PPF, SSY, NPS contributions are up to date
✅ Confirm health insurance renewal / new premiums for 80D

November — Bank TDS Certificates + Tax-Loss Harvesting

✅ Collect Form 16A from your bank (TDS on FD interest) — banks issue these by end of October
✅ Review your mutual fund and stock portfolio: identify unrealised losses for tax-loss harvesting before March 31
✅ Pay 75% cumulative advance tax by December 15

January – February — Employer Declaration Submission

✅ Submit investment declarations to employer (proof of 80C investments, rent receipts for HRA, home loan certificate)
✅ Submit actual proofs — not just declarations — by late February to allow correct TDS deduction in March
✅ Buy NPS ₹50,000 for 80CCD(1B) if not yet done
✅ Complete remaining 80C gap (ELSS, PPF top-up)

March — Last Chance + LTCG Harvest

✅ Complete all pending 80C investments before March 31
✅ Book LTCG gains within ₹1.25 lakh exemption (harvest and reinvest)
✅ Execute tax-loss harvesting if applicable
✅ Pay 100% of advance tax by March 15
✅ Make any last-minute 80D-eligible preventive health check-ups
✅ Ensure PPF, NPS, SSY minimum contributions have been made

July 31 — ITR Filing Deadline

✅ Download Form 26AS and AIS — cross-check all TDS credits
✅ Collect Form 16 from employer (issued by June 15)
✅ File your Income Tax Return (ITR) by July 31
✅ Verify your ITR electronically (Aadhaar OTP / net banking) within 30 days
⚠️ Missing this deadline: ₹5,000 penalty under Section 234F (₹1,000 if income ≤ ₹5L)

All Major Tax Deductions at a Glance

Section	What It Covers	Maximum Amount	Old Regime	New Regime
Standard Deduction	All salaried/pension income	₹75,000 (₹50,000 old regime)	✅	✅
80C	ELSS, PPF, EPF, LIC, home loan principal, tuition, NSC, FD	₹1,50,000	✅	❌
80CCD(1B)	Additional NPS Tier-1 contribution	₹50,000	✅	❌
80CCD(2)	Employer NPS contribution	14%/10% of basic (no cap)	✅	✅
80D	Health insurance + preventive check-up	₹25,000/₹50,000 + parents	✅	❌
HRA / Sec 10(13A)	Rent paid by salaried employees	Min of 3 limits (see ch. 4)	✅	❌
24(b)	Home loan interest	₹2,00,000 (self-occupied)	✅	❌
80E	Education loan interest	No cap (8 years)	✅	❌
80G	Donations to approved organisations	50% or 100% of donation	✅	❌
80TTA	Savings account interest (below 60)	₹10,000	✅	❌
80TTB	Interest income for senior citizens	₹50,000	✅	❌
LTCG exemption (equity/MF)	Annual LTCG on equity	₹1,25,000/year	✅	✅

Priya's Optimised Annual Tax Plan

Example: Priya's ₹12L Salary — New Regime Wins

Gross Salary: ₹12,00,000 Regime chosen: New Regime (limited deductions available)

Step 1 — Compare regimes: Priya rents, no home loan, EPF as only 80C investment (₹60K), no HRA claim (employer DTA). Old Regime taxable = ₹12L − ₹50K std − ₹60K EPF = ₹10.9L; Tax ≈ ₹1,58,400 New Regime taxable = ₹12L − ₹75K std = ₹11.25L; Tax = ₹71,500 ✅ New Regime saves ₹86,900 — she sticks with New Regime

Step 2 — Optimise within New Regime:

Ensure employer NPS contribution under 80CCD(2) — negotiate ₹60,000/year → saves ₹18,720 in 30% bracket
LTCG harvest: book ₹1,25,000 gain in ELSS before March 31 each year → zero additional tax

Final Tax After Optimisation: Taxable Income = ₹12L − ₹75K (std) − ₹60K (80CCD(2)) = ₹10.65L Tax = Nil(₹3L) + ₹20,000(5% on ₹3–7L) + ₹30,000(10% on ₹7–10L) + ₹9,750(15% on ₹10–10.65L) = ₹59,750 + 4% cess = ₹62,140 Saving vs unoptimised New Regime: ₹71,500 − ₹62,140 = ₹9,360 additional saving

Missing the July 31 Deadline Has Real Costs

Filing your ITR after July 31 incurs a late fee of ₹5,000 under Section 234F (reduced to ₹1,000 if your total income does not exceed ₹5 lakh). Additionally, a belated return cannot be revised if you later discover an error. Interest under Sections 234A, 234B, and 234C may further increase your total outgo.

Always Cross-Check Form 26AS Against Your Records

Every year before filing your ITR, download Form 26AS and the AIS from the Income Tax portal. Cross-check TDS figures with your Form 16 and bank statements. Credit mismatches — e.g., a bank reporting higher TDS than shown in Form 26AS — must be resolved before filing to avoid notices and refund delays.

Use the Finuraa Income Tax Calculator

Compare your Old vs New Regime tax in seconds using our

Income Tax Calculator. Enter your income and deductions to see exactly which regime saves you more in FY 2025-26.

Quick Quiz

What is the deadline for salaried individuals (with no audit requirement) to file their Income Tax Return for FY 2025-26?

Key Takeaways

Start tax planning in April — choosing your regime, starting ELSS SIPs, and reviewing insurance — not in March when you run out of time and options.
File your ITR by July 31; missing the deadline costs up to ₹5,000 plus interest, and you lose the ability to revise your return if errors are found later.
Always cross-check Form 26AS and AIS with your Form 16 and bank records before filing — unresolved mismatches delay refunds and trigger notices.
The New Regime maximisers: standard deduction (₹75,000) + employer NPS (80CCD(2), no cap) + annual LTCG harvest (₹1.25L exemption) are the three levers available even without 80C.

Ch 7: Capital Gains Tax — Stocks and MFs