ITR 2026: Want the maximum refund on your income tax return? Follow these 5 excellent tips when filing your ITR..

Best Strategies for Income Tax Returns: As the Income Tax Return (ITR) filing season approaches, the biggest question on taxpayers' minds is how to maximize their tax refunds. Maximizing a tax refund isn't just about finding last-minute deductions; it begins with ensuring your tax return accurately reflects your income, investments, and taxes already paid.

What is an Income Tax Refund?

An income tax refund is issued when the tax paid by a taxpayer during a financial year exceeds their actual tax liability. This excess tax could have been deposited via Tax Deducted at Source (TDS), Tax Collected at Source (TCS), or advance tax. Taxpayers can claim this excess amount by filing their ITR. Notably, after filing the return, the refund status can be tracked online via the income tax e-filing portal and other available options.

According to Chandni Anandan, a tax expert at ClearTax, taxpayers should closely review all exemptions and deductions applicable to them. They should compare the benefits of both tax regimes and verify that the information in their tax documents matches official records. Even a minor error can delay the refund or trigger a tax notice.

5 Excellent Strategies to Maximize Your Refund

To maximize their income tax refund, taxpayers should adopt the following strategies:

1- Compare Both Tax Regimes (Old vs. New)

Before filing your return, compare your tax liability under both the old and new tax regimes. Choose the regime that results in the lowest tax outflow. If a significant amount of TDS was deducted during the financial year, selecting the right regime can substantially increase your refund.

2- Avail full benefits of deductions under the Old Tax Regime

If you opt for the Old Tax Regime, you can reduce your taxable income through various deductions. Refer to the information below:

Section 80C: You can claim a deduction of up to ₹1.5 lakh by investing in instruments such as PPF, ELSS, EPF, NSC, life insurance premiums, and 5-year tax-saving FDs.

Section 80D: Additional tax savings ranging from ₹25,000 to ₹50,000 can be claimed through health insurance premiums. The claim amount depends on the age of the insured individual and their family members.

Section 24(b) and HRA: Salaried employees can claim a House Rent Allowance (HRA) exemption subject to specific conditions. Additionally, they can avail a deduction of up to ₹2 lakh on the interest paid for a home loan on a self-owned house.

3- Additional benefit of the National Pension System (NPS)

Individuals contributing to the National Pension System (NPS) can claim an additional deduction of up to ₹50,000 under Section 80CCD(1B), over and above the Section 80C limit. Tax benefits are also available on employer contributions under Section 80CCD(2). This deduction is available under both tax regimes (Old and New). Under this provision, claims can be made for employer contributions of up to 10% of the salary in the Old Regime and up to 14% in the New Regime, depending on the employer category.

4- Standard Deduction and Tax Rebate

Salaried taxpayers are automatically entitled to a standard deduction when calculating their taxable income. This deduction is ₹50,000 under the Old Regime and ₹75,000 under the New Regime. Additionally, eligible taxpayers can avail of a rebate under Section 87A, which can reduce their tax liability to zero if their taxable income falls within the prescribed limit.

Furthermore, recipients of family pensions are entitled to a deduction under Section 57(iia). This deduction—up to ₹15,000 under the old tax regime and up to ₹25,000 under the new tax regime—lowers taxable income, thereby improving eligibility for a refund.

5- Follow these essential steps to claim a refund

Filing an ITR is mandatory to claim a refund, even if the taxpayer is not otherwise required to file a return. Keep the following points in mind to expedite the refund process:

Choose the correct ITR form: Select the appropriate form based on your sources of income, residential status, and taxpayer category. Choosing the wrong form can lead to reporting errors and delay the refund.

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