The Indian government offers two income tax regimes: the old regime with deductions and the new regime with lower rates. Choosing the right one can save you thousands.
New vs Old Tax Regime
- New regime: Lower slab rates but no major deductions allowed
- Old regime: Higher rates but claim deductions under 80C, 80D, HRA, etc.
- Individuals with significant investments often benefit from the old regime
- Salaried employees with minimal deductions may prefer the new regime
- You can switch regimes every year at the time of filing
Key Deductions Under Old Regime
Section 80C allows deductions up to Rs. 1.5 lakh for investments in PPF, ELSS, life insurance, and more. Additional deductions are available for health insurance (80D), education loans (80E), and NPS (80CCD).
Calculate your tax liability with our GST Calculator and plan your savings better.
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