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By:

Sayli Gadakh

11 November 2025 at 2:53:14 pm

FY 2025–26 Tax Planning: Tips for the Salaried Individual

Plan early, choose wisely and invest smartly to enter FY 2025–26 with lower tax and greater financial stability. Most salaried individuals rush into tax planning at year-end, leading to poor choices and stress. With the New Tax Regime taking focus for FY 2025–26, early planning is wiser—it reduces tax, improves cash flow and clarifies long-term goals. The guidelines below provide a simple, structured approach. 1. Choosing Your Tax Regime Your first step is choosing between the Old Regime and...

FY 2025–26 Tax Planning: Tips for the Salaried Individual

Plan early, choose wisely and invest smartly to enter FY 2025–26 with lower tax and greater financial stability. Most salaried individuals rush into tax planning at year-end, leading to poor choices and stress. With the New Tax Regime taking focus for FY 2025–26, early planning is wiser—it reduces tax, improves cash flow and clarifies long-term goals. The guidelines below provide a simple, structured approach. 1. Choosing Your Tax Regime Your first step is choosing between the Old Regime and the New Regime. This single choice shapes your entire tax year. The Old Regime suits taxpayers who claim multiple deductions, offering many exemptions for those paying rent, servicing a home loan or investing in PPF, ELSS and insurance, though tax rates are higher. The New Regime is better for those with few deductions, providing lower rates but limited exemptions, and has been the default since FY 2023–24. Professional CA tip: At the start of April, prepare a sheet listing expected 80C investments, health insurance, home loan interest, HRA exemption, NPS and other deductions, then compare both regimes to see which results in lower tax. 2. Maximise Section 80C Section 80C allows a deduction of up to Rs. 1,50,000. Typical 80C options include EPF, PPF and ELSS. Other eligible choices include life insurance premiums, 5-year tax-saving FDs, Sukanya Samriddhi Yojana, children’s tuition fees and home loan principal. Tip:  Check how much EPF already covers before investing more. Many employees unknowingly overinvest. 3. Sec. 80D: Med. Ins. Deduction Health insurance offers both tax relief and financial protection. You can claim a deduction of Rs. 25,000 for premiums paid for yourself, your spouse and your children, and an additional Rs. 50,000 if you are paying for health insurance for your senior-citizen parents. Why it matters:  Medical costs are rising, and one emergency can wipe out savings. Buying a policy early keeps premiums lower and ensures the full deduction. 4. Fully Use HRA HRA is a key tax saver for salaried individuals in rented homes. The exemption is the lowest of three values: actual HRA received, 50 per cent of salary in metros (40 per cent in non-metros), or rent paid minus 10 per cent of salary. To claim it, you must submit rent receipts, a rent agreement and your landlord’s PAN if annual rent exceeds Rs.1 lakh. Common mistake:  Waiting till year-end for receipts. Keep them monthly. 5. Home Loan Deductions A home loan offers two main tax benefits: up to Rs. 2 lakh a year as an interest deduction under Section 24(b) for a self- or family-occupied property, and principal repayment eligible under Section 80C within the Rs. Rs.1.5 lakh limit. Joint loans:  If the property is jointly owned and both borrowers pay EMIs, each may claim deductions. 6. National Pension System (NPS) NPS provides an extra Rs. 50,000 deduction under Section 80CCD(1B) beyond the 80C limit. It is a strong long-term retirement option, investing across equity, bonds and debt for balanced growth. CA tip:  Employer NPS contributions remain tax-beneficial even under the New Regime. 7. Leave Travel Allowance (LTA) LTA can be claimed only for travel within India and only for actual travel fares—bus, train, or air. It does not cover food, accommodation, sightseeing or tour packages. You may claim LTA twice in a four-year block. Keep original tickets. 8. Salary Structure Review Your salary structure affects your tax benefits, yet many people overlook it and lose exemptions. Adding tax-efficient components such as meal coupons, fuel and phone reimbursements, a books and newspaper allowance, and a uniform allowance (where applicable) can help optimise your take-home pay. Ask HR if these can be added to reduce taxable income. 9. Manage Capital Gains If you invest in shares or mutual funds, plan your capital gains early. Long-term gains up to Rs. 1 lakh a year are tax-free, so spreading your sales can lower tax and help you avoid large, last-minute redemptions. Early planning helps manage profits and taxes better. 10. Submit Proofs on Time Missing investment or expense proofs can increase TDS and reduce your take-home pay, so submit them on time. Ensure you provide all key documents, including rent receipts, insurance and investment proofs, NPS statements and your home loan interest certificate. Timely submission keeps TDS correct and reduces refund delays. 11. Begin Planning in April Last-minute tax planning can lead to unnecessary expenses, while early planning helps you spread investments, pick suitable products, avoid unwanted policies, and protect your emergency fund. Tax planning is not just about reducing tax; it helps build a strong financial base. Choose the right regime, claim eligible deductions, optimise your salary structure and invest early. With proper planning before FY 2025–26 starts, you can achieve better savings, a lower tax burden and greater long-term stability. (The writer is a Chartered Accountant based in Thane. Views personal.)

A Tyranny of a Different Kind

Updated: Jan 2

Bangladesh

Revolutions often promise liberation but sometimes deliver a different kind of oppression. This truth has become painfully evident in Bangladesh, where the streets of Dhaka, once bustling with the fervour of revolution, now echo with a different kind of uncertainty. Over 100 days have passed since the Nobel laureate Mohammad Yunus was installed as the head of an interim government in Bangladesh. Hopes of a democratic renaissance have given way to fear and disillusionment. What began as a popular uprising to depose Sheikh Hasina’s administration on August 5 this year has become a cautionary tale of unintended consequences.


Few anticipated the chaos that would follow. The Yunus-led government, far from steering Bangladesh towards stability, has presided over an alarming erosion of civil liberties. Media freedom has been one of the first casualties. No fewer than 25 editors face murder charges, and arrest warrants have been issued against 100 journalists. Even Shakib Al Hasan, a cricketing icon and former parliamentarian under Hasina’s rule, has been implicated in a murder case alongside 147 others, including the former prime minister herself. Sheikh Hasina now faces a staggering 253 cases, ranging from murder to corruption. This crackdown on political opponents and dissenting voices bears an eerie resemblance to the authoritarianism the revolution sought to overthrow.


The targeting of religious minorities has added another layer of despair. Hindus, who comprise about 9 percent of Bangladesh’s population, find themselves particularly vulnerable. “My father is 77 years old and runs a small shop,” says Zubair, a resident of Noakhali. “He’s facing a severe charge of rioting and murder simply because he allows Hindus to have tea at his shop.” Such accounts are common. In Noakhali, where Hindus once made up 20 percent of the population, fear has driven them indoors.


A documentary filmmaker who captured evidence of brutality against minorities during the power transition - 200 incidents in just four days - was forced to flee Bangladesh. His footage paints a grim picture of the anarchy that erupted after Hasina’s ouster. Transparency International Bangladesh estimates that over 600 people were killed and 10,000 injured in the first two weeks of Yunus’s tenure. Lynching, communal violence, and vigilante justice have become disturbingly routine.


Bangladesh’s internal turmoil has significant regional implications. Yunus’s government has cultivated ties with Pakistan, re-establishing maritime links, direct flights, and defence agreements while resolving long-standing issues from the 1971 War of Independence. Simultaneously, relations with India, Bangladesh’s largest neighbour and historical ally, have deteriorated. Anti-India rhetoric dominates public discourse, and incidents of disrespect toward Indian symbols have become alarmingly frequent. Even the British Parliament has expressed concern over the rising anti-Hindu sentiment.


Washington is watching closely. Former U.S. Commissioner for International Religious Freedom, Johnnie Moore, warned that President-elect Donald Trump is “deeply concerned” about the situation. Trump’s rapport with Indian Prime Minister Narendra Modi adds a layer of complexity. During his campaign, Trump condemned the “barbaric violence” in Bangladesh, signalling a tougher stance ahead. His administration, set to take office in January, could press Yunus to rein in the radicals and restore order. Whether Yunus has the capacity, or the will to do so is another matter.


Despite its international posturing, Yunus’s administration seems increasingly unable to govern. Key decisions appear to be influenced by Islamist groups such as Jamaat-e-Islami and Hefazat-e-Islam. These groups have pushed through troubling changes, including the removal of Rabindranath Tagore and D.L. Roy from school curricula and proposals to alter the national anthem. Meanwhile, radical elements like Hizb-ut-Tahrir - an arm of the terrorist outfit ISIS - are reportedly active on college campuses.


The police, once a key instrument of state authority, have largely withdrawn. Branded as accomplices to Hasina’s alleged crimes, they are wary of taking decisive action. This paralysis has left ordinary citizens at the mercy of vigilantes and extremists.


Yunus’s initial dismissal of attacks on minorities as “vendetta politics” has only worsened the situation. His government’s admission of 88 communal violence cases targeting minorities is widely seen as an understatement. Transparency International’s findings suggest the true scale of the violence is much larger. Conflicting data from various government departments, with death tolls ranging from 872 to nearly 1,000, has further eroded public trust.


Bangladesh’s interim period was meant to be a bridge to stability, not a descent into chaos. The international community, particularly India and the United States, will play a pivotal role in shaping what comes next. Trump’s impending inauguration could mark a turning point, with potential diplomatic and economic pressure on Yunus to curb extremism and restore order. But as Bangladesh drifts further from its secular roots, questions remain about whether the interim government has the vision or capability to lead.


The promise of a freer, fairer Bangladesh has given way to a grim reality. If the first 100 days are any indication, the country faces an uphill battle to restore order, rebuild trust and protect its democratic values. The embers of freedom flicker weakly in Bangladesh today, overshadowed by the tyranny of a different kind. For now, the dream of a ‘new Bangladesh’ lies buried under the weight of its own contradictions.


(The author is a senior journalist based in Kolkata. Views personal.)

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