The beginning of the new financial year marks a crucial time for every salaried taxpayer in India. One of the most important income tax-related tasks to complete early in the year is selecting your preferred tax regime and submitting your investment declaration to your employer. Missing this step could result in higher TDS (Tax Deducted at Source) and unnecessary tax burden.

⚠️ Delay Can Cost You: Act Today

With the FY 2025–26 now underway, most companies have already sent emails to employees requesting them to choose between the old tax regime and the new tax regime. The deadline to submit this declaration is usually set by your company's HR department, and failing to respond on time can lead to automatic selection of the new regime.

✅ New Tax Regime: What’s New This Year?

As per the revised tax slabs for FY 2025-26 under the new tax regime:

• Income up to ₹4 lakh is tax-free

• If your total taxable income is below ₹12 lakh, you may end up paying zero tax

This makes the new regime particularly attractive for individuals who do not make multiple tax-saving investments.

🆚 Old vs. New: Which Regime Should You Choose?

If you prefer claiming deductions under Section 80C, 80D, HRA, and other exemptions, the old tax regime may still benefit you.

However:

• You must declare all expected investments at the beginning of the year

• Your employer will calculate your TDS based on your declaration

• If no declaration is submitted, more tax will be deducted from your salary

🔄 Made the Wrong Choice? You Can Still Fix It

If you mistakenly choose the old regime and end up paying more tax, don't panic. At the time of filing your Income Tax Return (ITR), you can opt for the new tax regime (if eligible), and any excess TDS will be refunded to you by the Income Tax Department.

🕒 Why This Task Should Be Done Today

Choosing the correct tax regime:

• Takes less than 5 minutes

• Can save you thousands in income tax

• Helps your employer deduct the correct TDS every month

• Ensures smoother tax filing and fewer headaches later in the year

📌 What You Should Do Right Now

1. Check your email for HR communication on investment declaration

2. Review both tax regimes based on your planned investments

3. Submit your declaration through your employer’s portal or HRMS

4. Keep a copy of your declaration for future reference

Final Word: Don’t wait until your salary slips start showing heavy tax deductions. Being proactive with your tax planning today could lead to significant savings by the end of the year.