With the start of financial year 2026-27, taxpayers are required to plan their finances that align with current income tax rules and available exemptions. According to tax experts, financial and tax planning ahead of ITR filing is crucial because tax efficiency is achieved during the year, not just at the time of filing. As reported by Mint, Nishant Shanker, an independent tax strategy expert and former senior manager of tax at EY, emphasized that "The return is just a reporting mechanism without prior planning; most optimization opportunities are already lost."
The revised Income-Tax Rules, 2026 have significantly enhanced meal card benefits for salaried employees. Effective April 1, 2026, the tax-exempt limit on meal vouchers and prepaid cards has been increased from ₹50 to ₹200 per meal, marking a substantial jump in the tax-free component available. For employees receiving two meals per working day across 22 working days a month, the annual tax-exempt benefit can now go up to ₹1,05,600, compared to ₹26,400 earlier. For individuals in the 30% tax bracket, this translates into potential tax savings of approximately ₹24,000–₹25,000 annually. However, meal card benefits must still be reported in income tax returns as perquisites under salary income, with the excess amount reported under Income from Salary → Perquisites (Section 17(2)) → Schedule S in ITR.
The Income Tax Act offers multiple legal ways to reduce tax burden, with experts advising taxpayers on several key strategies. According to Mint reports, deductions through Section 80C, 80D and similar provisions can be utilized through instruments such as health insurance, life insurance, PPF and ELSS. Taxpayers should choose between the old regime (with deductions) and the new regime (with lower rates and fewer exemptions) based on their income profile, with taxpayers with annual income less than ₹10 lakh generally opting for the new regime to avail incentives. Additionally, experts recommend salary structuring by planning components such as House Rent Allowance (HRA), Leave Travel Allowance (LTA) and reimbursements to reduce total taxable income.
Tax experts identify several frequent mistakes that may reduce tax savings for taxpayers. As reported by Mint, the most frequent mistake is waiting until the last minute and being forced to make tax investments that ultimately yield low returns. Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited, noted that "Not using tax exemptions and deductions to the fullest is also a stark mistake." Some taxpayers may overlook significant deductions available under the old regime while opting for the new tax regime for its simplicity, while inadequate tax records can lead to missed payment strategies and potential tax audit issues.
Experts emphasize the importance of financial alignment in tax planning rather than focusing solely on tax savings. According to Mint reports, liquidity and investment goals are other key factors that make a planned approach to tax-saving important. Taxpayers should prioritize legal efficiency over aggressive tax positions and ensure compliance focus while staying vigilant and informed about regular tax code updates. The strategic approach helps minimize risks associated with tax filing as a legally required event while achieving strategic and tactical benefits for taxpayers.
