Why Tax Planning Matters
Most salaried individuals overpay tax simply because they do not plan deductions across the full year.
Tax inefficiency on investments — wrong holding periods, wrong instruments — can reduce real returns by 15–25% over a decade.
The old vs new regime decision, made without analysis, costs many taxpayers thousands of rupees annually.
Capital gains from equity and property, if not timed correctly, create unnecessary high-slab tax events.
Retirement withdrawals without tax planning can push pension and redemption income into higher slabs unnecessarily.
A structured year-round tax plan integrates investments, withdrawals and income timing for maximum after-tax wealth.
Our Tax Planning Covers
Who This Service Is For
Salaried professionals who want to optimise deductions and choose the right tax regime
Business owners and self-employed professionals with multiple income sources to manage
Investors with equity, mutual fund or property gains to plan and manage efficiently
Individuals approaching or in retirement planning tax-efficient withdrawal strategies
NRIs with Indian income, property or investments requiring tax compliance guidance
Families planning to gift or transfer assets to children or parents tax-efficiently
What PlanUrDream Helps With
Tax Planning vs Tax Saving
Understand the difference between year-end tax saving and year-round tax planning — and why proactive planning creates far more wealth over time.
Old vs New Regime Analysis
A personalised break-even analysis comparing your deductions, HRA and home loan benefit under both regimes — so you choose the one that actually saves more.
Section 80C Optimisation
Fill the ₹1.5L 80C limit with instruments that align with your goals — ELSS for wealth creation, PPF for tax-free compounding, and EPF for retirement.
Section 80D Planning
Maximise deductions on health insurance premiums for self, spouse, children and parents — and understand how preventive health check-ups add to the limit.
Capital Gains Management
Plan the timing of equity redemptions to stay within the ₹1.25L annual LTCG exemption, offset losses against gains and reduce short-term gains tax exposure.
Tax-Efficient Investing
Choose instruments and holding periods that minimise tax — equity for LTCG rates, ELSS for 80C, debt funds where post-tax returns justify the allocation.
Retirement Tax Planning
Structure retirement withdrawals — EPF, NPS, SWP from mutual funds — to minimise tax across the retirement phase by sequencing income sources intelligently.
NPS Tax Benefits
Optimise contributions under Section 80CCD(1) and the additional ₹50,000 deduction under 80CCD(1B) — and understand the tax treatment of NPS withdrawals.
Estate Taxation Overview
Understand current tax rules on inherited assets, gifts between relatives and wealth transfer — and structure your estate plan to protect your heirs from unnecessary tax exposure.
Our Process
Income & Liability Review
Understand your income sources, existing deductions, investments and tax position.
Regime Analysis
Compare old and new regime to determine which delivers the lower net tax for your profile.
Deduction and Investment Plan
Map deductions and tax-saving investments to fill 80C, 80D, NPS and other applicable sections.
Capital Gains and Withdrawal Planning
Time redemptions, harvest losses and structure withdrawals to minimise tax events.
Annual Review
Reassess regime choice, gains position and deduction strategy at the start of every financial year.
Tax Planning Calculators
Use these calculators to plan tax-saving investments, model long-term goals and estimate your retirement corpus.
Goal Planner
Calculate how much to invest monthly to reach a financial goal — useful for planning 80C and education fund contributions.
Retirement Calculator
Estimate your retirement corpus and plan NPS, EPF and mutual fund contributions for a tax-efficient retirement.
SIP Calculator
Project the growth of ELSS and other SIP investments over time — helping you compare tax-saving instruments.
Lumpsum Calculator
Estimate the future value of lumpsum investments in PPF, ELSS or NPS for 80C and long-term wealth planning.
Illustrative Planning Scenario
Illustrative only. Not a guarantee of outcomes. Tax rules may change. Consult a qualified tax advisor for personalised advice.
A 42-year-old senior manager choosing the wrong regime for 3 years
Annual income ₹22L · Home loan · HRA · 80C investments · No regime analysis done · Paying ₹60,000+ extra tax annually
Income and Deduction Audit
All income sources are reviewed — salary, rental income, interest. Existing deductions are mapped: home loan interest (₹1.8L), 80C (₹1.5L), HRA (₹1.2L), 80D (₹30K).
Regime Comparison
Under old regime, total deductions of ₹4.8L reduce taxable income significantly. Under the new regime, these deductions are unavailable. Old regime saves ₹58,000 more after slab calculation.
80C Restructured
80C was partially filled with a low-return endowment plan. It is restructured — endowment surrendered, replaced with ELSS for better long-term returns with the same deduction.
Capital Gains Harvested
Equity mutual fund LTCG of ₹1.1L is booked before year-end, staying within the ₹1.25L exemption. The same units are repurchased, resetting the cost basis at no tax cost.
NPS Added
An additional ₹50,000 NPS contribution is made under 80CCD(1B) — the only deduction available under both regimes — adding a further ₹15,000 in tax savings at the 30% slab.
Frequently Asked Questions
What is the difference between tax planning and tax saving?
Tax saving is a subset of tax planning. Tax saving focuses on using deductions like Section 80C to reduce taxable income. Tax planning is broader — it involves structuring your income, investments, withdrawals and assets across the full year to legally minimise tax at every stage, including capital gains, dividend income, retirement withdrawals and wealth transfer. Good tax planning improves after-tax wealth, not just the current year's tax bill.
Which is better — old tax regime or new tax regime?
The answer depends on your income level, deductions and investment profile. The new regime offers lower slab rates but removes most deductions including 80C, 80D and HRA. The old regime benefits those with significant deductions — home loan interest, 80C investments, health insurance and HRA. A break-even analysis comparing your total deductions against the slab rate difference determines which regime is more beneficial for your specific situation.
What are the best tax-saving investments under Section 80C?
Popular 80C instruments include ELSS mutual funds (3-year lock-in, market-linked returns), PPF (15-year lock-in, tax-free returns), EPF (employer and employee contributions), NSC, tax-saving FDs (5-year lock-in) and life insurance premiums. ELSS is generally preferred for long-term wealth creation due to its shorter lock-in and higher return potential. The ₹1.5 lakh limit should be filled with instruments aligned to your goals and risk tolerance.
How are capital gains taxed in India?
Capital gains tax depends on the asset type and holding period. For equity mutual funds and stocks, gains held over 12 months (LTCG) are taxed at 12.5% above ₹1.25 lakh per year; short-term (under 12 months) at 20%. For debt mutual funds, all gains are now taxed at slab rate regardless of holding period. Property gains after 24 months are long-term, taxed at 12.5% without indexation (post-2024 Budget). Strategic timing of redemptions and booking losses can reduce capital gains tax meaningfully.
Can I save tax on health insurance premiums?
Yes. Section 80D allows a deduction of up to ₹25,000 for health insurance premiums paid for yourself, spouse and children. An additional ₹25,000 (or ₹50,000 if senior citizens) is available for parents' health insurance. Preventive health check-up costs up to ₹5,000 are included within the ₹25,000 limit. This is available under the old tax regime.
How can I reduce tax on my investments?
Tax-efficient investing strategies include: holding equity funds for over 12 months to qualify for LTCG rates; harvesting up to ₹1.25 lakh in LTCG annually without tax; using ELSS for 80C; investing through PPF for tax-free returns; considering debt funds only where the return net of tax justifies the investment; and planning redemptions to avoid bunching gains in a single year.
What tax planning is relevant for retirement?
Retirement tax planning covers: contributions to NPS (Section 80CCD(1B) allows an additional ₹50,000 deduction beyond 80C); planning withdrawal sequences to minimise tax — drawing from taxable accounts first while deferring tax-free sources; structuring SWP from equity funds to stay within the LTCG exemption limit; and ensuring EPF withdrawals after 5 years of continuous service remain tax-free.
Is there inheritance tax or estate tax in India?
India currently does not have inheritance tax or estate duty. Assets inherited from a deceased family member are not taxable at the time of inheritance. However, income generated from inherited assets is taxable. Gifts received from specified relatives are also exempt under Section 56(2). Gifting assets during a lifetime can trigger tax if the recipient is not within the specified exempt relationship list and the value exceeds ₹50,000 in a year.
Related Services and Resources
Stop Overpaying Tax. Start Building Wealth.
A single tax planning session can save you tens of thousands of rupees — and redirect that money toward your goals.