Tax Planning & Advisory
Legal tax saving is not about loopholes — it is about using every provision the Income Tax Act gives you, at the right time, in the right way. Individual planning, business structuring, capital gains strategy, advance tax computation, and presumptive taxation advisory — all CA-led, all legally sound, all optimised for AY 2025-26.
Tax Planning Consultation
CA calls back within ✅ 30 minutes
Tax Planning Is Not Evasion — It Is Your Legal Right
The Supreme Court of India affirmed that every taxpayer has the right to arrange their affairs so as to reduce their tax liability — as long as it is within the framework of the law. TaxClue's advisory is built entirely on sections of the Income Tax Act — no grey-area structures, no aggressive schemes, no promises that aren't legally backed.
Individual Tax Planning
The single most impactful tax planning decision for every individual. The right choice saves thousands — the wrong default costs them. TaxClue computes both regimes on your actual numbers before your ITR is filed.
🏛️ Old Tax Regime
🆕 New Tax Regime (Default)
New Regime Is Now the Default — But Not Always the Winner
From FY 2024-25, the New Regime is the default unless you explicitly opt for the Old Regime when filing your ITR. The New Regime wins when your deductions are small (below ~₹3.75 lakh total). The Old Regime wins when you have significant deductions: home loan interest of ₹2L + 80C of ₹1.5L + 80D of ₹50K + NPS 80CCD(1B) of ₹50K = ₹4.5L of deductions — enough to make the Old Regime cheaper for someone earning ₹15-25 lakh. TaxClue computes both on your exact figures — never assumes.
Key Deductions Under the Old Regime — What You Can Claim
Investments & Payments
LIC premium, PPF, ELSS, home loan principal, tuition fees (2 children), NSC, 5-year bank FD
NPS Additional
Contribution to National Pension System (Tier I) — over and above the 80C limit. Separate deduction.
Medical Insurance
Premium for self, spouse, children (₹25K) + senior parent premium (₹50K). Preventive health check-up ₹5K within limit.
Home Loan Interest
Interest on housing loan for self-occupied property. For let-out property, entire interest deductible (no cap), subject to set-off rules.
Education Loan Interest
Interest on education loan taken for higher education of self, spouse, or children. No cap on amount — available for 8 years.
Standard Deduction
Flat deduction from salary income — no documentation required. Available in both Old and New regimes (from FY 2024-25 onwards).
Business Tax Planning
🏗️ Entity Structure for Tax Efficiency
📊 Key Business Deductions to Maximise
| Entity Type | Tax Rate | Surcharge / Cess | Effective Rate | Best For |
|---|---|---|---|---|
| Proprietorship | Individual slab (5%-30%) | 10% surcharge if income > ₹50L | Up to 42.74% (highest) | Small businesses below ₹10L profit |
| Partnership Firm / LLP | 30% flat | 12% surcharge if income > ₹1 Cr; 4% cess | 34.32% (below ₹1 Cr) | Professional services, ₹20L-₹1 Cr profit range |
| Pvt Ltd (Sec 115BAA) | 22% flat (no exemptions) | 10% surcharge; 4% cess | 25.17% effective | Businesses willing to forgo exemptions for lower rate |
| Pvt Ltd (standard) | 25% (turnover ≤ ₹400 Cr) | 7% (₹1-10 Cr), 12% (above ₹10 Cr); 4% cess | 26.00% effective | Businesses wanting standard deductions + lower rate |
| New Manufacturing Co (115BAB) | 15% flat | 10% surcharge; 4% cess | 17.01% effective | Manufacturing units incorporated after Oct 2019 |
Capital Gains Advisory
Listed Equity / Equity MF — STCG
Listed Equity / Equity MF — LTCG
Immovable Property — LTCG
📈 Tax Loss Harvesting — Equity & MF
🏠 Reinvestment Exemptions — Sec 54 / 54F / 54EC
₹1.25L LTCG Exemption — Harvest It Every Year, Not Just Once
Under Section 112A, the first ₹1.25 lakh of LTCG from listed equity and equity mutual funds is completely tax-free every financial year. This is not a one-time exemption — it resets every April. TaxClue advises clients with large equity portfolios to book ₹1.25 lakh of LTCG every March, then immediately re-purchase the same securities. The gain resets the cost basis at the current price, reducing future taxable LTCG. Over 10 years of disciplined harvesting, this strategy can save lakhs in tax with zero disruption to the investment portfolio.
Advance Tax Computation
Advance tax is income tax paid in instalments during the financial year — not as a lump sum at the end. Missing instalments attracts 1% per month interest under Sections 234B and 234C, which adds up silently and is discovered only when the ITR is assessed. TaxClue computes your advance tax at the start of each financial year and updates it after every significant income event.
Presumptive Taxation Advisory
| Situation | Opt Presumptive? | Reason |
|---|---|---|
| Actual profit margin > 8% (business) / 50% (profession) | ✓ Yes — opt in | Declaring lower deemed income saves tax vs actual profit |
| Actual profit margin < 8% / 50% (low-margin business) | ✗ No — opt out | Declaring actual lower income requires books — but saves more tax |
| Want to avoid maintaining books and audit | ✓ Yes — if eligible | No books, no audit (if within turnover limit & declaring minimum %) |
| Planning to carry forward business losses | ✗ No | Presumptive scheme does not allow loss declaration — cannot set off |
| Capital gains, foreign income, or income > ₹50L | ✗ ITR-4 not available | Cannot use ITR-4 with presumptive if these conditions exist — use ITR-3 |
| Opted out last year and want to re-enter | ✗ 5-year restriction | Sec 44AD — once opted out, cannot re-enter for 5 years |
The 5-Year Lock-Out — The Most Dangerous Presumptive Tax Mistake
Under Section 44AD, if you opt into the presumptive scheme and subsequently declare income lower than the prescribed percentage (or opt out) in any year within 5 consecutive years, you cannot use presumptive taxation under Sec 44AD for the next 5 years. This means your books become compulsory, and tax audit under Sec 44AB applies if turnover exceeds ₹1 Crore. Many business owners discover this restriction only after they've already filed a year with lower declared income. TaxClue audits this eligibility before advising any client to enter or exit the presumptive scheme.
Frequently Asked Questions
Pay Less Tax — Legally, Strategically, Every Year
Tax planning done once gives one year of savings. Tax planning built into your annual routine gives savings that compound. TaxClue builds a tax plan that works for your specific numbers — not generic advice.
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