Tax planning is the process of analysing your financial situation to ensure maximum tax efficiency. It helps you legally reduce your tax liability by making smart use of deductions, exemptions, and rebates provided under Indian tax laws.
Goal: Pay the right amount of tax — not more, not less.
Reduces tax outgo legally
Increases net income & savings
Promotes disciplined investments
Helps achieve financial goals faster
Ensures full compliance with the Income Tax Act
| Investment/Product | Lock-in | Tax Benefits |
|---|---|---|
| ELSS (Equity Funds) | 3 yrs | Tax-saving + Wealth Creation |
| PPF (Public Provident Fund) | 15 yrs | Tax-free returns |
| Life Insurance Premium | Varies | Tax deduction on premiums |
| Sukanya Samriddhi Yojana | 21 yrs | For girl child future |
| Principal on Home Loan | - | Claim under 80C |
| Children‘s Tuition Fees | - | For up to 2 children |
‘Don‘t treat tax-saving as a last-minute activity. Plan it like an investment — wisely and early.‘
Choose tax-saving options based on your goals
Balance between risk and return (ELSS vs PPF vs FD)
Understand new vs old tax regime
Align tax planning with overall wealth strategy
File returns and manage documentation smoothly
Let‘s Plan Your Taxes the Smart Way — avoid last-minute rush. Start now with the guidance of Team Blue Pelican Wealth.
A tax deduction is an amount that you can subtract from your total taxable income, which reduces the amount of income that is subject to tax. This helps lower your overall income tax liability — legally and smartly.
Goal: Keep more of what you earn by making smart financial decisions that are rewarded by tax law.
If your annual income is ₹10,00,000 and you claim deductions of ₹2,00,000, you will be taxed only on ₹8,00,000 — not the full ₹10 lakhs.
| Section | What It Covers | Max Deduction | Notes |
|---|---|---|---|
| 80C | ELSS, PPF, Life Insurance, Home Loan (Principal), Tuition Fees | ₹1.5 lakhs | Most commonly used |
| 80D | Health Insurance Premium | ₹25,000 (₹50,000 for senior citizens) | Includes family cover |
| 24(b) | Home Loan Interest | ₹2,00,000 | For self-occupied property |
| 80G | Donations to approved charities | 50% to 100% | Needs valid receipts |
| 80E | Interest on Education Loan | No limit | For self, spouse, children |
| 80CCD(1B) | NPS Contribution | ₹50,000 | Over and above 80C limit |
| 80TTA / 80TTB | Interest on Savings A/c or FD (Seniors) | ₹10,000 / ₹50,000 | Based on age |
Deductions ≠ Exemptions: Deductions reduce taxable income, Exemptions reduce income itself (like HRA, LTA). Both help you save tax — but they are different tools.
A tax calculator is a smart tool that helps you estimate your income tax liability based on your income, deductions, and the applicable tax slab. Key inputs:
Total annual income (salary, business, interest, rent, etc.)
Investments and expenses eligible for deductions (80C, 80D, etc.)
HRA, standard deduction, and any applicable exemptions
Once the data is entered, the calculator shows your taxable income and total tax payable. It also highlights how much tax you are saving through deductions and whether switching tax regimes can be more beneficial for you.
India has two tax regimes: Old Tax Regime and New Tax Regime. We can help you choose the right regime based on your salary, business income, and deductions.
📞 Contact Blue Pelican Wealth for personalized tax planning today.