Income Tax Planning India 2026: Legal Ways to Reduce Your Business Tax Bill — VELTRO

Most Indian founders pay 20-40% more income tax than they legally need to. VELTRO conducts annual planning reviews in January-February, when you still have time to act before March 31.

Legal Tax Reduction Strategies for 2026

• Section 80-IAC — Startup Tax Holiday: Zero income tax for 3 consecutive years for DPIIT-recognised startups
• R&D Deduction (Section 35): 100% weighted deduction on approved in-house R&D expenditure
• Employee benefit structuring: HRA, LTA, NPS employer contribution, meal vouchers — all tax-exempt
• Depreciation optimisation: Timing of asset additions maximises deductions in high-profit years
• New vs old tax regime annual comparison: Optimal regime changes every year