Save tax legally
Compare every way to cut the tax on your gains and salary, with the Income-tax section for each. Rules for FY 2025-26.
FREE · NO SUBSCRIPTION · NO UPFRONT FEEWays to reduce the tax
Lowest tax first. Combine them — e.g. spread the sale and gift part to adult children.
Reinvest the full sale amount in a residential house54F
Exemption is proportional to the sale amount reinvested; you must not own more than one other house on the date of sale. Deposit in the Capital Gains Account Scheme until you buy.
Sell in the first year after retirementUnused basic exemption
With no salary that year, the unused nil slab is set off against the gain first.
Sell in parts over 3 financial years112A — ₹1.25 lakh exemption every year
Redeem about ₹16,66,667 a year (e.g. part in March, part in April) so each year's gain stays in lower brackets and uses a new ₹1.25 lakh exemption. Assumes your other income stays the same.
Tax-gain harvesting every year112A exemption
Each year sell units with up to ₹1.25 lakh of long-term gain and buy them back the same day; this resets your cost. Over 3 years about ₹3,75,000 of gain becomes tax-free.
Sell everything this financial year112A
Whole gain taxed in one year in your name.
Deductions you have not used yet
Only the old regime allows these (except employer NPS 80CCD(2), allowed in both).
Section 80C₹90,000 unused
ELSS / PPF / EPF / term-plan premium
Section 80CCD(1B)₹50,000 unused
NPS Tier-I
Section 80D₹25,000 unused
Health insurance
| 80C | EPF, PPF, ELSS, life insurance premium, 5-yr tax-saver FD, SSY, NSC, home-loan principal, tuition fees | ₹1,50,000 | Old |
| 80CCD(1B) | Own NPS Tier-I contribution over and above 80C | ₹50,000 | Old |
| 80CCD(2) | Employer NPS contribution (up to 14% of basic in new regime, 10% in old) | 14% of basic | Old / New |
| 80D | Health insurance premium for self/family and parents | ₹25,000 | Old |
| 24(b) | Interest on home loan for a self-occupied house | ₹2,00,000 | Old |
| 80E | Interest on education loan (no cap, 8 years) | No cap | Old |
| 80TTA | Savings-account interest (non-seniors) | ₹10,000 | Old |
| 80TTB | All bank/post-office interest for senior citizens | ₹50,000 | Old |
Estimates for a resident individual; surcharge marginal relief is not applied. Confirm with a chartered accountant before filing. Educational guidance, not tax or investment advice.