New vs old regime · 80C deductions · HRA exemption · Capital gains · ITR filing deadline July 31, 2026 · Save up to Rs 3.5 lakh legally
By FinMandi TeamMay 2026✓ Updated May 2026
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Reviewed by FinMandi Research Team
Backed by 10+ years of banking experience · Verified May 2026
✓ RBI Sources✓ Bank Verified✓ May 2026
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ITR Filing Deadline — July 31, 2026
File your Income Tax Return for FY 2025-26 before July 31, 2026 to avoid penalty of Rs 5,000. Late filing after July 31 attracts interest under Section 234A.
⚡ Quick Summary — Tax Saving 2026
80C deductions: Up to Rs 1.5 lakh — ELSS, PPF, EPF, LIC, NSC, Tax FD — saves Rs 46,800 at 30% slab
HRA exemption: Save tax on house rent — metro cities 50%, non-metro 40% of basic salary
80D: Up to Rs 25,000 for self health insurance + Rs 50,000 for senior parent premiums
NPS extra: Rs 50,000 additional deduction under 80CCD(1B) over and above 80C
Home loan: Rs 1.5L under 80C (principal) + Rs 2L under Section 24b (interest)
New regime: Lower slab rates but no deductions — better for those with few investments
Old regime: Higher rates but all deductions available — better for those with 80C + HRA + home loan
New Tax Regime vs Old Tax Regime — Which is Better?
🆕 New Tax Regime
Lower slab rates
Standard deduction Rs 75,000
No 80C, HRA, LTA deductions
No home loan interest deduction
Simpler — fewer calculations
Default regime from FY 2024-25
✅ Best for: Salaried with income below Rs 7L · Those with minimal investments · Young earners just starting
📋 Old Tax Regime
Higher slab rates
80C: Rs 1.5L deduction
HRA exemption available
Home loan interest Rs 2L deduction
NPS extra Rs 50,000 deduction
80D health insurance deduction
✅ Best for: Income above Rs 10L · Those with home loan + HRA + 80C investments · Maximum tax saving
New regime rebate: Tax is NIL for income up to Rs 7 lakh under the new regime due to Section 87A rebate. This means if your total income is below Rs 7 lakh, you pay ZERO tax under new regime even without any deductions.
Step 3 — Choose regime: Calculate tax under both new and old regime — choose whichever saves more
Step 4 — Fill ITR online: incometax.gov.in → e-File → Income Tax Returns → File ITR
Step 5 — Claim all deductions: 80C, 80D, HRA, home loan interest — all in the deductions section
Step 6 — Verify: e-Verify via Aadhaar OTP, net banking or DSC — within 30 days of filing
💡 File before July 31 to avoid: Rs 5,000 late filing fee (Rs 1,000 if income below Rs 5L) · Interest at 1% per month under 234A · Loss carry forward not allowed on late returns · Refund delay by 6-12 months
The last date to file ITR for FY 2025-26 (Assessment Year 2026-27) is July 31, 2026 for individuals who don't require audit. Late filing after July 31 attracts a penalty of Rs 5,000 (Rs 1,000 if income is below Rs 5 lakh). You can still file a belated return up to December 31, 2026 with penalty. However losses cannot be carried forward if filed late.
It depends on your income and investments. New regime is better if your income is below Rs 7 lakh (zero tax due to 87A rebate) or if you have minimal deductions. Old regime is better if you have home loan, HRA, 80C investments of Rs 1.5L, NPS contributions and health insurance — total deductions above Rs 3.75L typically make old regime better for incomes above Rs 10L. Use our Income Tax Calculator to compare both regimes for your exact situation.
Key documents: Form 16 (from employer), Form 26AS (tax credit statement from incometax.gov.in), AIS (Annual Information Statement), bank interest certificates, home loan interest certificate, rent receipts (for HRA), investment proofs for 80C (ELSS statement, PPF passbook, LIC premium receipt), health insurance premium receipt for 80D. All these help you claim maximum deductions and file accurately.
📋 Sources & Methodology
Data sourced from: RBI official website · Official bank websites · SEBI · IRDAI · Ministry of Finance press releases. Rates verified by FinMandi Research Team. Last verified: May 2026. FinMandi does not accept payment to rank any bank or product.
Disclaimer: Tax laws are subject to change. This article is for educational purposes only. Consult a CA or tax professional for personalised tax advice.