Tax Planning in Retirement
Retirement changes your income mix entirely — from salary to interest, pension, annuities, and capital gains — and your tax strategy needs to change with it. This guide covers the annual old-vs-new regime decision (new regime: zero tax up to ₹12–12.75 lakh for FY 2025-26; old regime: higher senior citizen exemptions plus Section 80TTB’s ₹50,000 interest deduction), the critical role of Form 15H in avoiding unnecessary TDS, how to stack tax-free lump sums from EPF, PPF, Gratuity, and NPS, how to use the ₹1.25 lakh annual capital gains exemption to make part of your SWP income effectively tax-free, and why most retirees — unlike salaried employees — need to actively track advance tax obligations (though seniors without business income are exempt from this).