Nothing is certain except death and taxes, but fortunately when it comes to the latter, there is a fair bit of planning that can be done to ease the burden.
If you are among those who have already done the calculations and decided to stay with the new tax regime, which was first proposed in 2020, you may not have much to worry about. You could simply continue with your financial plan. But if you are someone who has stayed in the new tax regime without giving it any thought-Union Minister of Finance Nirmala Sitharaman made it the default tax regime from FY2024-then you need to evaluate your options well.
If you are among those who find the old tax regime more beneficial because of the deductions and benefits it offers, you still need to plan carefully to ensure that the tax planning exercise fits into your overall investment portfolio. We give a list of the most efficient tax-saving instruments, and the rationale of investing in them.
The one that fits your needs will be the best choice for you.
CHOOSE THE REGIME
The first step to tax planning is deciding which tax regime is suitable for you if you haven't already done so. You can only do this by comparing how much tax you are liable to pay under each of the tax regimes-new and old.
Despite the attractiveness of the new tax system after Budget 2023, the old regime remains beneficial for many. Says Abhishek Soni, CEO, Tax2Win, an income tax portal: "If your total eligible deductions and exemptions in the old regime are higher than the breakeven threshold of deductions, for your income level, then stick with the old regime. If the breakeven threshold is higher than your total eligible deductions and exemptions, the new regime may be more beneficial for you." To figure out what works for you, see Choosing Between Tax Regimes.
Denne historien er fra February 2024-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 2024-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Stay Ahead Of AI-Powered Cyber Fraud
AI has become an integral part of our lives, right from customer service at banks to insurance claims. But it has now become a powerful arsenal for the fraudsters too who are increasingly using AI to scam individuals and corporations alike to commit fraud. The key is to stay vigilant
Travelling To Europe? Pack In The Essential Covers
Smart travellers must know that insurance is a must-have. From essential health coverage to theft protection and trip interruptions, know what you need for a worry-free Europe trip
How To Spend Wisely This Year-End
We all spend during the year-end. But the trick is not to overspend or borrow, either from friends, or your own investment, to fund your indulgence. Maintaining balance is the key
Travel Now Pay Later (TNPL)
Travel now, pay later (TNPL) is a close cousin of the more popular buy now, pay later (BNPL) schemes.
12 Books Devina Mehra Loved Reading In 2024
Listing books of her choice, among the ones she reads during the year, is ace investor Devina Mehra's favourite year-end activity. She says it's a daunting task to pick around 12 books from a list of 50.
Here's How To Avail Of Ayushman Bharat Yojana
Launched in 2018, the Ayushman Bharat Yojana aimed to provide health coverage to targeted benefi ciaries from the Socio-Economic Caste Census (SECC) 2011, based on deprivation and occupational criteria.
'Focus On The Business, Assess If You Want To Be A Partner For 10-20 Years'
Professor Sanjay Bakshi, a value investor, behavioural economist and adjunct professor at Flame University, Pune, gives his unique perspective on how to choose a stock, in an interview with Nidhi Sinha, editor, Outlook Money, as part of the Wealth Wizards series. He also shares his learnings from role models Warren Buffett, Charlie Munger, Benjamin Graham and others, and how being a chartered accountant, economist, investor and teacher make him into what he is today. Edited excerpts from the interview
The New Trump Card For IT, Pharma
Donald Trump has been re-elected as the 47th President of the US after a gap of four years. Here's how it will affect the Indian markets and how it will benefit sectors such as IT, pharma, export-oriented sectors and others
European Sojourn
Tight on budget? Dump the popular European destinations for the little-known wonders that are equally attractive
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
