WHICH TAX REGIME SHOULD YOU SELECT? ARE YOU CONFUSED?



Exclusions and deductions are part of the old regime, although the new regime has lower slab rates and fewer exemptions. Employees must disclose their preferred tax structure to their employers prior to the start of the fiscal year.

WHY DO YOU HAVE TO OPT FOR A TAX REGIME? 

Because the CBDT (Circular no 04/2023) made it COMPULSORY for the Employers and hence, Employers are asking their Employees for information on which regime they wish to select. The employer will make the necessary TDS deductions. You must choose between the New and Old Tax Regimes; otherwise, the Employer will deduct TDS in accordance with the New Tax Regime, which is the DEFAULT option. The TDS on Salary has no bearing on filing income tax return, whether they opt for the Old or New Income Tax Regime. While submitting your ITR, you can make changes.

TIPS ON WHICH IS THE RIGHT TAX REGIME FOR YOU 

  • For Income up to Rs 7 lakh the New Tax Regime is better 
  • In case you don’t have Tax savings and Deductions to avail then consider the New Tax Regime 
  • In case you have just Rs 1.5 lakh of 80C Deduction then New Tax Regime might be better 
  • In case you have Rs 1.5 lakh of 80C Deduction and also a Home Loan, Old Tax Regime be better for you. 
  • In case you have an HRA Deduction to claim, the Old Tax Regime might be better for you. 

OPTING FOR OLD OR NEW TAX REGIME, WHICH IS WISER?

The old tax regime will provide you with the tax exemptions and deductions. New tax regime will make calculating taxable income comparatively easier. And if you are unable to make investments during the financial year, then the new tax regime may help you in lowering tax outgo.

                                                           Blog | Visit Our Website | Investment 
Location: India

Comments

Post a Comment

Popular posts from this blog

What Is a Dividend and How Do They Work

Image
Investors anticipate the yearly results of the firms in which they own shares every year around mid-February after the third quarter results. Big companies pay dividends after the annual results. Some companies pay twice a year and some pay thrice a year, but the one paid at the end of the year is by far the biggest amount.  Most profit-making companies pay dividends when they announce their annual results. It makes sense that Indian investors eagerly await the big, fat payouts from stocks with high dividend yields. Unhappy shareholders frequently complain about "the low dividend this year" at AGMs. It's fair to say that for many investors who have become accustomed to getting substantial dividends year after year, the annual or "last" dividend is a sensitive matter. Why Invest in Dividend Stocks? Dividend-paying stock stabilizes the portfolios of conservative investors. Investor confidence in these equities is boosted by this. And as a result, the market is giv...
Read more

AN AGENT OR BROKER OR ONLINE - WHOM SHOULD WE BUY INSURANCE FROM?

Image
As stated in the article's description, choosing between an agent, broker, and internet platform while purchasing insurance coverage is crucial and difficult for a newbie. Insurance is a very straightforward product that involves paying a premium to cover the risk and receiving payment from the insurance provider in the case of a covered incident occurring.   It is comparable to a consumer, trading money for goods or services. We observe clients buying and selling goods and services, just like in any other business. Due to the fact that it depends on variables beyond the consumer's control, the estimated insurance payout varies. The fact that working with insurance companies is difficult and the subject is complex is nevertheless widely understood. It's easy to understand why. The insurance company will ensure that the sum being released is justified because, if and when it pays out, the amount will be significantly more than the premium the policyholder paid. This expl...
Read more

UNDERSTANDING THE COSTS ASSOCIATED WITH INVESTING IN MUTUAL FUNDS

Image
  Investors should carefully analyze the overall expense ratio, or expense ratio, before making a mutual fund investment. It is a sum that is out of sight but has a direct impact on the total returns that are received. The overall costs spent by a mutual fund plan are shown by this ratio. Investors tend not to focus much on this number because they tend to be more interested in the returns being generated. It is crucial to comprehend how the overall expense ratio is determined as well as how things are changing in general because it has a big impact. Annual percentage figure The annual percentage amount that goes towards paying running expenditures can be estimated using the overall expense ratio. The ratio includes expenses for fund management fees, advertising, sales and marketing, and even other administrative costs associated with keeping the fund in operation. The portion of the return that goes towards covering operating expenses is indicated as a percentage. The expense rati...
Read more