The 2025-26 financial year is drawing to a close. With less than a week left for fiscal 2026 to end, there are still ways in which you can lower the tax burden. Here are some ways in which you can axe the tax even during the last few days of the current financial year.
The NPS addition
You can bump up your tax deductions under ‘Section 80C’ if you are still under the old tax regime by adding ₹50000 to the NPS (National Pension Scheme). The addition under ‘Section 80CCD(1B))’ will take your total deduction to ₹2 lakh.
Use preventive health check-ups and cover parents
You can also claim ₹5000 for your family for preventive health check-ups under Section 80D—there is no need to produce any receipt for this. It is an easy option that people tend to forget while keeping their focus on big-ticket health insurance policies.
If you’re paying health insurance premium for your parents, you can claim an additional ₹25000 as deduction if they are less than 60 years old. If they are senior citizens (above 60 years), you claim ₹50000 as deduction. This is on top of what you claim for your own or your family’s policy.
“Medical expenses are climbing fast, about 11.5%-14% a year, which is way ahead of regular inflation. For lots of people, health insurance isn’t just about saving taxes. It’s about protecting your family first, tax benefits (come) second,” said Gaurav Bhagat, founder, Gaurav Bhagat Academy, which offers consulting services.
The twin advantage of ‘Super top-ups’
Then, there are super top-ups in health insurance. You pay small premiums and get huge coverage of ₹50 lakh or more if you have a base health insurance policy and add a super top-up to it. Super top-ups also qualify for deductions under Section 80D, just like regular policies. You can get a super top-up on a solid base policy (with coverage of ₹5 lakh- ₹10 lakh).
Claim deduction on interest earned in savings accounts
You can claim deductions of up to ₹10000 on interest earned in savings accounts with banks, post offices and cooperative banks under ‘Section 80TTA’ of ‘Income Tax Act’ under the old tax regime. This benefit is available to individual taxpayers and HUFs (Hindu Undivided Family) but not to senior citizens who get special benefits under ‘Section 80TTB’ of ‘’.
This deduction, however, is not available for interest earned through fixed deposits and recurring deposits. The deduction, which is applied while calculating your total taxable income, can help reduce your overall tax liability. The total deduction is capped at ₹10000 per financial year across all savings accounts.
Senior citizens can claim deductions of up to ₹50000 on interest earned from savings accounts, fixed deposits and recurring deposits with banks, post offices and cooperative banks in a financial year under ‘Section 80TTB’ under the old tax regime. The union budget has increased this limit to ₹1 lakh, which is applicable in the new financial year.
But senior citizens who claim benefits under ‘Section 80TTB’ cannot avail deductions under ‘Section 80TTA’ during the same financial year.
Tax loss harvesting
If you have underperformers in your portfolio of equity shares and equity-related investments, you can sell them before March 31 to book the loss and offset taxable gains, thereby trimming your tax bill. “With the (Long Term Capital Gains) exemption raised to ₹1.25 lakh, people are now selling just enough to stay under that limit,” Gaurav said. This allows taxpayers to reset their cost base enabling them to not pay any taxes, he said.
Donations to charitable institutions
Donations made to recognised charitable institutions provide you tax benefits. You can claim deduction on 50% of the amount donated or the total amount depending on the charity you donate to under Section 80G of the Income Tax Act in the old tax regime. But the maximum donation allowed as deduction should not exceed 10% of your gross total income.
Taxpayers should ensure that all deductions are properly accounted for and must check the same with the employer, according to taxation experts. “They should avoid last minute investment traps. They should not opt for instruments with long lock-in periods just to save taxes. Taxpayers must choose options that fit their investment goals,” experts said.