Income Tax On 65 Lakh Salary

If you earn Rs. 65 lakh annually, choosing the right tax planning strategy can make a significant difference to your overall tax liability. While both the old and new tax regimes tax income above the highest slab at 30%, the tax you actually pay depends on factors such as eligible deductions, surcharge, cess, and the regime you opt for.

For many high-income earners, life insurance continues to be an important part of financial planning. Besides providing financial protection for your loved ones, eligible life insurance policies may also offer tax benefits under the applicable provisions of the Income Tax Act, 2025, depending on the tax regime you choose and the conditions prescribed under the law.

Before making any investment decision, compare both tax regimes carefully and evaluate whether your existing deductions and long-term financial goals justify opting for the old regime or whether the simplicity of the new regime better suits your needs.

Compare life insurance plans, assess your coverage needs, and get a personalised quote.

What is the Budget 2026 update on the income tax?

The Union Budget 2026 did not introduce any changes to the personal income tax slab rates. The provisions announced earlier continue to apply under the Income Tax Act, 2025, effective from 1 April 2026. Salaried taxpayers under the new tax regime continue to receive a standard deduction of Rs. 75,000, while the revised slab structure remains unchanged.

Key highlights

• No changes to the new tax regime slab rates.
• New Income Tax Act, 2025 is effective from 1 April 2026.
• Salaried taxpayers under the new regime continue to receive a Rs. 75,000 standard deduction.
• Income above Rs. 24 lakh continues to be taxed at 30% under the new regime, with applicable surcharge and cess.

Taxpayers can still choose between the old and new tax regimes every financial year, subject to the applicable rules. If you opt for the old tax regime, you may continue to claim eligible deductions on premiums, while tax exemptions are available under both old and new tax regimes as per the applicable provisions.

Some commonly claimed deductions include:

• Eligible life insurance premium deductions under the applicable provisions of the Income Tax Act, 2025.
• Eligible health insurance deductions.
• Home loan benefits, where applicable.
• Other deductions and exemptions available under the old regime, subject to eligibility and prescribed conditions.

If you have substantial deductions and exemptions, the old regime may still result in a lower overall tax liability despite higher slab rates.

Tax laws are subject to change. Bajaj Finance Limited does not provide tax or investment advisory services. Please consult your tax advisor before making financial decisions.

Key Budget 2026 highlights for individuals earning Rs. 65 lakh

For taxpayers earning Rs. 65 lakh annually, the Budget 2026 largely maintains the existing personal income tax framework.

Key points include:

Although there are no fresh slab changes, taxpayers earning Rs. 65 lakh should evaluate surcharge implications, available deductions under the old regime, and their long-term financial planning before selecting a tax regime.

If you earn Rs. 65 lakh annually, tax planning should focus on both reducing your taxable income (where eligible) and protecting your long-term financial goals.

You can consider the following steps:

1. Compare your tax liability under both tax regimes.
2. Claim all eligible deductions if you opt for the old regime.
3. Include life insurance as part of your overall financial planning for protection and eligible tax benefits.
4. Review health insurance and retirement investments that qualify under the applicable provisions.
5. Reassess your tax strategy every financial year as your income, investments, and tax laws change.

Life insurance should primarily be purchased to provide financial security for your family. Any eligible tax benefits should be viewed as an additional advantage rather than the sole reason for buying a policy.

Tax laws are subject to change. Bajaj Finance Limited does not provide tax or investment advisory services. Please consult your tax advisor before making financial decisions.

Income tax slabs under old vs new income tax regime

Choosing between the old and new tax regimes is an important part of tax planning, especially if you earn Rs. 65 lakh annually. While both regimes tax higher income at 30%, they differ in terms of deductions, exemptions, and tax-saving opportunities. The right choice depends on your eligible deductions and overall financial planning.

Old tax regime – Income tax slabs

Key features of the old regime:

• Allows eligible deductions and exemptions.
• Life insurance premiums may qualify for deduction under Section 123 of the Income Tax Act, 2025 (subject to eligibility and the applicable tax regime).
• Other eligible deductions, such as health insurance and home loan benefits, may also be available if you qualify.
• Suitable for taxpayers with significant eligible deductions and exemptions. 

New tax regime – Income tax slabs

Key features of the new regime

• Offers simplified tax rates with fewer deductions and exemptions.
• Salaried taxpayers can continue to claim the standard deduction of Rs. 75,000.
• Premium deductions under Section 123 are generally not available if you opt for the new tax regime.
• Suitable if you do not have substantial deductions to claim. 

Unsure which tax regime works better for you? Compare your tax liability under both regimes and explore life insurance plans that can support your long-term financial goals and get quote.

If you earn Rs. 65 lakh a year, effective tax planning involves choosing the right tax regime, making use of eligible deductions, and investing in products that support your long-term financial goals. Life insurance can help you protect your family's future while offering tax benefits where applicable under the Income Tax Act, 2025.

Step 1: Compare both tax regimes

Calculate your tax liability under both the old and new tax regimes before filing your return. If you have substantial eligible deductions, the old regime may be beneficial. Otherwise, the new regime's simplified structure could result in lower compliance.

Step 2: Claim eligible deductions

If you opt for the old tax regime, claim all eligible deductions available under the Income Tax Act, 2025. Premiums paid towards eligible life insurance policies may qualify for deductions under Section 123, subject to the prescribed conditions and limits.

Step 3: Include life insurance in your financial plan

Choose life insurance primarily to protect your family's financial future. Any eligible tax benefits should be considered an additional advantage rather than the sole reason for purchasing a policy.

Step 4: Review your tax plan every year

Your income, financial goals, and tax laws may change over time. Reviewing your investments and insurance portfolio annually can help ensure your tax strategy remains aligned with your needs.

Tax laws are subject to change. Bajaj Finance Limited does not provide tax or investment advisory services. Please consult your tax advisor before making financial or investment decisions.

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Conclusion

If you earn Rs. 65 lakh annually, choosing the right tax regime and planning your finances strategically can help you optimise your tax liability while working towards your long-term financial goals. Since both the old and new tax regimes have different benefits, it is important to compare your tax outgo based on your eligible deductions, exemptions, and financial commitments before making a decision.

Life insurance can be an important part of this strategy. Along with providing financial protection for your loved ones, eligible policies may also offer tax benefits under the applicable provisions of the Income Tax Act, 2025, depending on the tax regime you choose and the prescribed conditions. Instead of purchasing a policy solely for tax savings, consider it as a long-term financial protection tool that also supports your overall financial planning.

Compare life insurance plans, assess your coverage needs, and get a personalised quote to choose protection that fits your financial goals.