Tax Planning Tips for Salaried Individuals 2026-27

INCOME TAX ON SALARY – FY 2026–27

For salaried employees, understanding the new tax regime is crucial for effective salary and tax planning.

Taxable Salary Components:

• Basic Salary
• Dearness Allowance (DA)
• HRA & other allowances
• Bonus & incentives
• Perquisites
• Employer contributions (if taxable)

New Tax Regime – Tax Slabs:

• Up to ₹4 lakh → Nil
• ₹4–8 lakh → 5%
• ₹8–12 lakh → 10%
• ₹12–16 lakh → 15%
• ₹16–20 lakh → 20%
• ₹20–24 lakh → 25%
• Above ₹24 lakh → 30%

Key Points for Salaried Employees:

• Standard Deduction: ₹75,000
• Potential zero tax for salaries up to ₹12.75 lakh with applicable rebates.
• Review Form 16, TDS details, and AIS before filing ITR.
• Effective tax planning aids in managing salary and tax liabilities.

Plan your salary, check your tax, and file your ITR accurately.

INCOME TAX ON SALARY

FY 2026–27 (AY 2027–28)

Are you a salaried employee?
Here are the basics you should know!

NEW TAX REGIME – FY 2026–27

STANDARD DEDUCTION
₹75,000

Salary up to ₹12.75 lakh can potentially have zero tax, subject to rebate conditions.

Check your Form 16, TDS and AIS before filing your ITR.

Plan your salary tax wisely!

1. INCOME CALCULATION Gross Salary (CTC)                            ₹15,00,000
Less: Standard Deduction                ₹  75,000
Taxable Income                            ₹14,25,000

Note: Rebate u/s 87A is available if total income (after rebate conditions) is up to ₹12,00,000. In this example, income is more than ₹12 lakh, so rebate is not available.

2. TAX CALCULATION Up to ₹4,00,000                                                   Nil
₹4,00,001 – ₹8,00,000 (4,00,000 @ 5%)        ₹20,000
₹8,00,001 – ₹12,00,000 (4,00,000 @ 10%)    ₹40,000
₹12,00,001 – ₹14,25,000 (2,25,000 @ 15%) ₹33,750
Total Tax                                                               ₹93,750
Add: Health & Education Cess (4%)                ₹  3,750

Total Tax Payble :- 97500

TAX PLANNING TIPS