Last 10 Days to Save Tax: Smart Earners Rethink Strategies in FY 2025-26

By- Gaurav Bhagat, Founder, Gaurav Bhagat Academy

The final 10 days of the financial year (FY) are often a blur of frantic paperwork and last-minute bank transfers. But things have shifted as we approach the end of March 2026. People aren’t just trying to hit the old ₹1.5 lakh limit for tax savings anymore.

 With the New Tax Regime now the default, people have a big zero-tax threshold, up to ₹12 lakh (effectively ₹12.75 lakh with the standard deduction). That changes the game. Smart earners are weighing whether to keep things simple or squeeze out every optimisation.

Especially at the top, people are pulling out all the stops to finish FY 2025-2026 strong.

1. The “Regime Realism” Audit

Most people blindly invest because that’s what they’ve always done. But the smart ones start by checking their “break-even point.” In this financial year, the New Regime doesn’t bump you to the 30% tax bracket until you cross ₹24 lakh.  You can do this thing: If your total deductions (HRA, 80C, 80D, plus home loan interest) don’t add up to that “magic number” of ₹3.75-₹4.25 lakh, you should ditch the Old Regime. 

Instead of rushing to plug money into insurance or ELSS (Equity Linked Savings Scheme) just for the sake of saving taxes, prefer them to keep the cash handy and take advantage of the lower rates under the New Regime. It’s all about picking what works best, not just following old routines.

2. Going Beyond the 80C Ceiling

Some folks still stick with the Old Regime, and for them, maxing out the standard ₹1.5 lakh under Section 80C is just the starting line. The top earners look for extra, often overlooked deductions:

• NPS Kicker (Section 80CCD(1B)): Instead of stopping at ₹1.5 lakh, add ₹50,000 more to the National Pension System. That bumps your total deduction up to ₹2 lakh.

• The “Silent” Health Deduction: For preventive health check-ups under Section 80D, you can claim ₹5,000 for your family. It’s usually a no-receipt and easy win that people forget while focusing on big insurance policies.

3. Health over Wealth (Section 80D)

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 second. 

• If you’re paying health insurance premiums for your parents, you can claim an extra ₹25,000 deduction if they’re under 60. If they’re senior citizens (60 or above), that jumps to ₹50,000. And that’s on top of what you claim for your own or your family’s policy.

• Super top-up plans: You pay small premiums and get huge coverage of ₹50 lakh or more, once you cross a set deductible. These plans are totally deductible under 80D, just like regular policies. Get a solid base policy (₹5-10 lakh) and stack a super top-up on top. You end up with high coverage at a fraction of the price. It’s a smart way for middle-income families to handle rising claims and cover big hospital bills without draining their wallets.

4. Harvesting Capital Gains

It isn’t just about what you earn, it’s about what you sell.

• Tax Loss Harvesting: If you have underperformers in your portfolio. Sell those before March 31 to book the loss and offset taxable gains, thus trimming your tax bill.

• The ₹1.25 Lakh Sweet Spot: With the LTCG (Long Term Capital Gains) exemption raised to ₹1.25 lakh, people are now selling just enough to stay under that limit. This resets their cost base and pays zero tax today.

5. Extracting the Final Drop from the Employer

Top earners aren’t afraid to ask HR for what they deserve as the financial year comes to an end. In the New Regime, the majority of exemptions may be eliminated, but if you take prompt action, you may still be eligible for a few clever refunds. 

• Benefits of Remote Work: If your employer reimburses phone or internet fees, submit claims by March 31. 

• LTA Check: If you haven’t used your Leave Travel Allowance, now is the time to do so before it expires.

The Real Lesson: Plan for Wealth, Not Just Tax

There’s a clear line between frantic earners and the smart ones. The frantic crowd buys a high-commission insurance policy on March 30 just to save ₹30,000 in tax; they basically hand the rest of their premium to a mediocre product. 

Smart earners see tax savings as part of their investment return. In these last days, they make sure tax moves fit their bigger life goals. If an investment doesn’t line up with your future, don’t buy it just for a deduction. Sometimes, paying the tax and keeping your cash is the smartest move you’ll ever make.