Smart Tax Planning Ideas for FY 2025-26

Tax planning for FY 2025-26 is all about making the right choices early. With proper planning, you can save a significant amount of money and grow your wealth systematically. Here are some of the best strategies for 2025-26:

1. Claim Your Standard Deduction

 Salaried employees get a ₹50,000 standard deduction – make sure your employer reflects it in Form 16.

2. Invest in Tax-Free Bonds & ELSS

 Tax-free bonds are great for safe income, while ELSS mutual funds give tax-saving + higher return potential (lock-in: 3 years).

3. Education Loan Tax Benefit

Under Section 80E, the interest paid on education loans is fully deductible – no upper limit – perfect for higher education planning.

4. Donations Under Section 80G

Support approved charities and claim deduction (50% or 100% depending on the organization).

5. Work-from-Home & Business Expenses

If you are self-employed or a freelancer, claim part of your internet, rent, electricity, and laptop expenses as business costs.

6. Plan Capital Gains Smartly

Reinvest gains from property sales into 54EC bonds or another house to save tax under Section 54/54F.

💡 Pro Tip: Don’t wait till March 2026 — start investing in April 2025 itself. This will help you spread out investments and maximize returns.