Outdated versus New Revenue Tax Regime: As you select between the outdated and the revised new earnings tax regime for the monetary 12 months 2023-24, one factor to recollect is that investments nonetheless proceed to be vital. Regardless of whether or not you derive tax advantages from investments or not, they serve an important position in your monetary planning.
Finance Minister Nirmala Sitharaman introduced a revised new earnings tax regime efficient April 1, 2023, which can even any more be the default tax regime. The brand new earnings tax regime has new earnings tax slabs for 2023-24 which provide decrease tax charges however with the caveat of not having the ability to avail many exemptions and deductions.
Widespread exemptions claimed by salaried and particular person taxpayers within the outdated tax regime reminiscent of advantages beneath Part 80C, Part 80D, Home Lease Allowance (HRA), Depart Journey Allowance (LTA), curiosity on housing mortgage, Part 80TTA and so on. aren’t allowed beneath the brand new earnings tax regime. Solely a typical deduction of Rs 50,000 has been included from this 12 months.
Outdated vs new tax regime: Why PPF, insurance coverage, ULIPs, ELSS nonetheless matter | Funding suggestions
Does that imply that fashionable tax saving devices lose their sheen? No. On this week’s episode of TOI Pockets Talks, we focus on vital funding avenues it’s best to take into account even in case you go for the brand new earnings tax regime.
Kuldip Kumar, Private Tax Knowledgeable and Former Nationwide Chief – World Mobility Follow at PwC India lists out funding choices for salaried people regardless of their tax regime. Kuldip makes an vital level that if choosing the brand new earnings tax regime leaves extra disposable earnings in your fingers, then it’s sensible to put aside some quantity for investments that may yield good returns.
Watch the video above to know why placing your cash in life insurance coverage insurance policies, Unit Linked Insurance coverage Plans (ULIPs), Fairness Linked Financial savings Scheme (ELSS), Public Provident Fund (PPF), Nationwide Financial savings Certificates (NSC) and medical insurance coverage nonetheless is smart.
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