Financial Planning for New Year: Tax Year 2026 - Discussion

[cardio_guycardio_guy is verified member.]

So yet another financial year is ending today. Tomorrow onwards, there is no concept of Financial Year and Assessment Year. It is just called as Tax Year.
How has been your investments in last year and till now? Are you financially better today than what you were an year back?
Are you able to track your income and expenses? Have your income increased in the current year?
Let us have a discussion on how people are dealing with their finances.

These days, getting a job, getting placed in a company, is all very old school method. In the age of AI, kids are making thousands and lakhs from Instagram and Twitter just by using some AI tools and creating content. I may sound controversial but content creation is a big area that is exploding each day.

People who go for 9-5 jobs are tied to their workplace throughout the week and till they are employed. They don't get time to enjoy their life. People must try to reduce their dependency on job. Only then they can come out of that chain and do things that they like, go to places, travel etc.

How much is enough is different for each person. Each one has to find out his real self. That is a spiritual journey. Personal finance is also a spiritual journey. Once you figure out what you need, it is easy to travel in that path.

People do different things to earn money - some are employed, some do business etc. But whatever it be, save a portion of what you make so that we don't have to depend on job or business till our death. There are a lot of investment options in India - some give lesser stable returns, market linked instruments give fluctuating returns. Some people even do trading in markets to make the best of their time.

But at the end of the day, the only thing that matters if is we have enough money for our needs. Liquidity is what decides our fate and that is what gets us things done. Tax and Risk are unavoidable. Govt is becoming smarter each day. They are increasing their tax collection net and catching every possible means. India being the highest populous country, we have no choice of supporting the 100 crores of under privileged. It is foolish to depend on government to take care of us during our old age. Invest wisely and get well insured for health emergencies. Health is the biggest wealth. If we cannot stand up and do things by our own, then all our wealth is a waste. Time, Health and Money are the three pillars of life. Be wise and live peacefully. Happy new year.

 

[Aegon]

Govt. really buried told tax regime 100ft deep.

Salaried class with single source of income, have got to do 0 tax planning.
But when it comes to capital gains or sources of income, needs some planning.

 

[sahilgulati5]

Right "Health is Biggest Wealth" after COVID everything has changed.

 

[hender]

So yet another financial year is ending today. Tomorrow onwards, there is no concept of Financial Year and Assessment Year. It is just called as Tax Year.
How has been your investments in last year and till now? Are you financially better today than what you were an year back?
Are you able to track your income and expenses? Have your income increased in the current year?
Let us have a discussion on how people are dealing with their finances.

These days, getting a job, getting placed in a company, is all very old school method. In the age of AI, kids are making thousands and lakhs from Instagram and Twitter just by using some AI tools and creating content. I may sound controversial but content creation is a big area that is exploding each day.

People who go for 9-5 jobs are tied to their workplace throughout the week and till they are employed. They don't get time to enjoy their life. People must try to reduce their dependency on job. Only then they can come out of that chain and do things that they like, go to places, travel etc.

How much is enough is different for each person. Each one has to find out his real self. That is a spiritual journey. Personal finance is also a spiritual journey. Once you figure out what you need, it is easy to travel in that path.

People do different things to earn money - some are employed, some do business etc. But whatever it be, save a portion of what you make so that we don't have to depend on job or business till our death. There are a lot of investment options in India - some give lesser stable returns, market linked instruments give fluctuating returns. Some people even do trading in markets to make the best of their time.

But at the end of the day, the only thing that matters if is we have enough money for our needs. Liquidity is what decides our fate and that is what gets us things done. Tax and Risk are unavoidable. Govt is becoming smarter each day. They are increasing their tax collection net and catching every possible means. India being the highest populous country, we have no choice of supporting the 100 crores of under privileged. It is foolish to depend on government to take care of us during our old age. Invest wisely and get well insured for health emergencies. Health is the biggest wealth. If we cannot stand up and do things by our own, then all our wealth is a waste. Time, Health and Money are the three pillars of life. Be wise and live peacefully. Happy new year.

Very nice thread 🎉, 👏 Every sentence is full of wisdom, experience and understanding of "India Today".
my fav "Content Creator" is the one with whom I can't stop myself being expressive 😍

 

[Mpautobe]

So yet another financial year is ending today. Tomorrow onwards, there is no concept of Financial Year and Assessment Year. It is just called as Tax Year.
How has been your investments in last year and till now? Are you financially better today than what you were an year back?
Are you able to track your income and expenses? Have your income increased in the current year?
Let us have a discussion on how people are dealing with their finances.

These days, getting a job, getting placed in a company, is all very old school method. In the age of AI, kids are making thousands and lakhs from Instagram and Twitter just by using some AI tools and creating content. I may sound controversial but content creation is a big area that is exploding each day.

People who go for 9-5 jobs are tied to their workplace throughout the week and till they are employed. They don't get time to enjoy their life. People must try to reduce their dependency on job. Only then they can come out of that chain and do things that they like, go to places, travel etc.

How much is enough is different for each person. Each one has to find out his real self. That is a spiritual journey. Personal finance is also a spiritual journey. Once you figure out what you need, it is easy to travel in that path.

People do different things to earn money - some are employed, some do business etc. But whatever it be, save a portion of what you make so that we don't have to depend on job or business till our death. There are a lot of investment options in India - some give lesser stable returns, market linked instruments give fluctuating returns. Some people even do trading in markets to make the best of their time.

But at the end of the day, the only thing that matters if is we have enough money for our needs. Liquidity is what decides our fate and that is what gets us things done. Tax and Risk are unavoidable. Govt is becoming smarter each day. They are increasing their tax collection net and catching every possible means. India being the highest populous country, we have no choice of supporting the 100 crores of under privileged. It is foolish to depend on government to take care of us during our old age. Invest wisely and get well insured for health emergencies. Health is the biggest wealth. If we cannot stand up and do things by our own, then all our wealth is a waste. Time, Health and Money are the three pillars of life. Be wise and live peacefully. Happy new year.

Great words... "Health is the biggest wealth. If we cannot stand up and do things by our own, then all our wealth is a waste. Time, Health and Money are the three pillars of life. Be wise and live peacefully"..

 

[lijov]

So yet another financial year is ending today. Tomorrow onwards, there is no concept of Financial Year and Assessment Year. It is just called as Tax Year.
How has been your investments in last year and till now? Are you financially better today than what you were an year back?
Are you able to track your income and expenses? Have your income increased in the current year?
Let us have a discussion on how people are dealing with their finances.

These days, getting a job, getting placed in a company, is all very old school method. In the age of AI, kids are making thousands and lakhs from Instagram and Twitter just by using some AI tools and creating content. I may sound controversial but content creation is a big area that is exploding each day.

People who go for 9-5 jobs are tied to their workplace throughout the week and till they are employed. They don't get time to enjoy their life. People must try to reduce their dependency on job. Only then they can come out of that chain and do things that they like, go to places, travel etc.

How much is enough is different for each person. Each one has to find out his real self. That is a spiritual journey. Personal finance is also a spiritual journey. Once you figure out what you need, it is easy to travel in that path.

People do different things to earn money - some are employed, some do business etc. But whatever it be, save a portion of what you make so that we don't have to depend on job or business till our death. There are a lot of investment options in India - some give lesser stable returns, market linked instruments give fluctuating returns. Some people even do trading in markets to make the best of their time.

But at the end of the day, the only thing that matters if is we have enough money for our needs. Liquidity is what decides our fate and that is what gets us things done. Tax and Risk are unavoidable. Govt is becoming smarter each day. They are increasing their tax collection net and catching every possible means. India being the highest populous country, we have no choice of supporting the 100 crores of under privileged. It is foolish to depend on government to take care of us during our old age. Invest wisely and get well insured for health emergencies. Health is the biggest wealth. If we cannot stand up and do things by our own, then all our wealth is a waste. Time, Health and Money are the three pillars of life. Be wise and live peacefully. Happy new year.

Really appreciate the post.. "People must try to reduce their dependency on jobs" is the highlight of your post IMO..

 

[cardio_guycardio_guy is verified member.]

Adding to the last post - I have seen many many people who were so powerful, wealthy and strong in their prime years, but as they get old and get bedridden, or in wheelchair, no one give any respect to them. No one wants to take care of them and everyone want to somehow get rid of them. Only if you are healthy, you can do things of your own. Even for brushing and bathing, we need another person's help, then it is very difficult. Yes with money we can hire 2-3 full time maids and servants. There also money is important.
Getting older is difficult. Getting older without money is even more difficult.

 

[Credit_Cards]

while we all wants to be on top of financial planning but at the end of the day lack of resources, correct information and often procrastination is the enemy, with your post hopefully we TF members shall have better planning this FY

 

[Credit_Cards]

@cardio_guy, what a wonderfully insightful post! I completely agree with your perspective on how personal finance and career choices are evolving in today’s world. The shift from the traditional 'Financial Year' and 'Assessment Year' to a simplified 'Tax Year' is definitely a step in the right direction, making things easier for taxpayers. It's amazing how much the financial landscape has changed, especially with the rise of AI tools and content creation offering new income streams for younger generations.


I also love how you’ve tied personal finance to a spiritual journey. It’s true that understanding what we truly need and aligning our financial decisions with that can bring peace of mind. Investing wisely and prioritizing health are the foundations for a secure future, and the importance of liquidity cannot be overstated.


A quick addition to the conversation — while managing liquidity and diversifying investments is key, it's also important to stay informed about tax-saving tools and government schemes, which can be a great way to optimize our financial strategies. For instance, in India, tools like PPF (Public Provident Fund) and ELSS (Equity-Linked Savings Schemes) not only offer tax benefits but also contribute to long-term financial security.


Thank you for the inspiring post, and here's to making smart financial decisions for a peaceful and fulfilling Technofino Community!

 

[SSV]

Govt. really buried told tax regime 100ft deep

This is the whole point of introducing the new Tax regime several years ago...

 

[AlgoTrader]

finally switching from old tax regime to new, nothing else changing for me.

 

[arthurmorgan]

Health is an important lookout for majority of people now. They don't think much about spending a dime for getting better health.

 

[lokii]

Good discussion points! I'm just starting out on this journey. Got my first job in Jan 2024 and after settling in for the first 4 months, I've started investing at least 10% each month. I really agree with what you said about reducing dependency on a single job. – I'm now actively looking for side income ideas to explore in my free time.

 

[cardio_guycardio_guy is verified member.]

Adding another thought here:
Being in the new tax regime, my income tax for the year ended March 31, 2025 (FY 2024-25) was around Rs 8,35,000/-
(This is only the tax deducted from salary, if I add other incomes too, it would cross 9L)

I cannot imagine how it would had been in the old regime. Definitely it would have been higher than this because I don't have that much deductions to claim for.

Is there any legal way by which we can reduce the tax outgo?

(It is very painful to pay this much tax, and apparently no visible benefits)
I may not depend on govt to take care of me in the old age, give me pension, go to govt hospital for medical help or anything like that.
But even basic social needs are not there I feel. There is no social security. There is no clean air and water. Everything is polluted.
Yes overpopulation and corruption are the biggest problems. But the reality is that spending of tax money by the govt is very very inefficient.

I have heard and read that many rich people don't pay this much tax. How is that possible? How do they keep their money and wealth outside of the banking system and income tax tracking? What other methods do such people do to get away from paying huge taxes?

I am not trying to bring in any political discussion or blame any political party here. I am also not finding ways to evade taxes illegally.

 

[hender]

Adding another thought here:
Being in the new tax regime, my income tax for the year ended March 31, 2025 (FY 2024-25) was around Rs 8,35,000/-
(This is only the tax deducted from salary, if I add other incomes too, it would cross 9L)

I cannot imagine how it would had been in the old regime. Definitely it would have been higher than this because I don't have that much deductions to claim for.

Is there any legal way by which we can reduce the tax outgo?

(It is very painful to pay this much tax, and apparently no visible benefits)
I may not depend on govt to take care of me in the old age, give me pension, go to govt hospital for medical help or anything like that.
But even basic social needs are not there I feel. There is no social security. There is no clean air and water. Everything is polluted.
Yes overpopulation and corruption are the biggest problems. But the reality is that spending of tax money by the govt is very very inefficient.

I have heard and read that many rich people don't pay this much tax. How is that possible? How do they keep their money and wealth outside of the banking system and income tax tracking? What other methods do such people do to get away from paying huge taxes?

I am not trying to bring in any political discussion or blame any political party here. I am also not finding ways to evade taxes illegally.

Buddy, brain drain from India regularly happening from past so many year's, many world economy have Indian in a significant contributor role.

Any money especially if you are getting as Salary in Bank account, don't have much options to hide. , Reimbursement, or other type , may have somehow tax efficient structure.
Consult with HR and Internal Financial team, to restructure (Salary and Benefits) in a more tax efficient way.

For rest, better consult with your CA.

Many salaried are paying 30+% net as Tax

All the best 👍 🎉

 

[AlgoTrader]

Adding another thought here:
Being in the new tax regime, my income tax for the year ended March 31, 2025 (FY 2024-25) was around Rs 8,35,000/-
(This is only the tax deducted from salary, if I add other incomes too, it would cross 9L)

I cannot imagine how it would had been in the old regime. Definitely it would have been higher than this because I don't have that much deductions to claim for.

Is there any legal way by which we can reduce the tax outgo?

(It is very painful to pay this much tax, and apparently no visible benefits)
I may not depend on govt to take care of me in the old age, give me pension, go to govt hospital for medical help or anything like that.
But even basic social needs are not there I feel. There is no social security. There is no clean air and water. Everything is polluted.
Yes overpopulation and corruption are the biggest problems. But the reality is that spending of tax money by the govt is very very inefficient.

I have heard and read that many rich people don't pay this much tax. How is that possible? How do they keep their money and wealth outside of the banking system and income tax tracking? What other methods do such people do to get away from paying huge taxes?

I am not trying to bring in any political discussion or blame any political party here. I am also not finding ways to evade taxes illegally.

as a salaried person, we cant do much. my friend runs 10+ business which has huge profits and turnover in multiple crores but he continues to pay less than 1L as income tax. Salaried always gets screwed

 

[arthurmorgan]

as a salaried person, we cant do much. my friend runs 10+ business which has huge profits and turnover in multiple crores but he continues to pay less than 1L as income tax. Salaried always gets screwed

Wonder what are those businesses if you can eloborate a bit, I find it hard to believe `crores`

 

[jk51]

Adding another thought here:
Being in the new tax regime, my income tax for the year ended March 31, 2025 (FY 2024-25) was around Rs 8,35,000/-
(This is only the tax deducted from salary, if I add other incomes too, it would cross 9L)

I cannot imagine how it would had been in the old regime. Definitely it would have been higher than this because I don't have that much deductions to claim for.

Is there any legal way by which we can reduce the tax outgo?

(It is very painful to pay this much tax, and apparently no visible benefits)
I may not depend on govt to take care of me in the old age, give me pension, go to govt hospital for medical help or anything like that.
But even basic social needs are not there I feel. There is no social security. There is no clean air and water. Everything is polluted.
Yes overpopulation and corruption are the biggest problems. But the reality is that spending of tax money by the govt is very very inefficient.

I have heard and read that many rich people don't pay this much tax. How is that possible? How do they keep their money and wealth outside of the banking system and income tax tracking? What other methods do such people do to get away from paying huge taxes?

I am not trying to bring in any political discussion or blame any political party here. I am also not finding ways to evade taxes illegally.

Our tax structure rewards business owners and those who are into agriculture as primary source of livelihood. Hence these two avenues become the only way if one intends to pay NIL or bare minimum taxes. Not getting into who’s responsible for such a structure, utilization of tax corpus, etc. The most practical way in our country for a salaried is to start something along (apart from Job) till it reaches feasibility to take benefit of this.

 

[AlgoTrader]

Wonder what are those businesses if you can eloborate a bit, I find it hard to believe `crores`

locus bus service, national lorry service, real estate, poultry, high end product based farming, textile manufacturing, school till class 5, low end clothes showroom(s), retail electronics showroom (tv and mobiles), selected appliances distribution in multiple districts,
he has lot of cash based businesses and few that comes with proper billing to mix it up really well