Dear Sirs,
I have always appreciated this platform for the guidance we receive from our mentors and seniors. I am seeking your advice on which regime is preferable - the Old or the New. If the Old regime is recommended, could you suggest investments to help guide our employees? I kindly ask all seniors to provide guidance on this matter. Thank you for all the support.
Thank you.
From India, Vijayawada
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3I have always appreciated this platform for the guidance we receive from our mentors and seniors. I am seeking your advice on which regime is preferable - the Old or the New. If the Old regime is recommended, could you suggest investments to help guide our employees? I kindly ask all seniors to provide guidance on this matter. Thank you for all the support.
Thank you.
From India, Vijayawada
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Old vs. New Income Tax Regime in India - 2023-24
When considering whether the old or new income tax regime is better for the financial year 2023-24 in India, it's essential to weigh the benefits and drawbacks of each before making a decision. Here are some key points to help guide your choice:
🔍 Old Regime:
- Under the old regime, individuals can avail various deductions and exemptions provided by the Income Tax Act, 1961.
- Taxpayers can claim deductions on expenses such as investments in specified instruments, insurance premiums, home loan repayments, etc.
- Opting for the old regime may be beneficial if you have substantial deductions that can significantly reduce your taxable income.
🔍 New Regime:
- The new tax regime offers lower tax rates but eliminates most deductions and exemptions available under the old regime.
- This regime simplifies tax calculations and may be advantageous if your deductions are minimal or if you prefer a straightforward tax structure without the need for extensive tax planning.
Suggestions for Employees under the Old Regime:
1. Encourage employees to invest in tax-saving instruments like Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Pension System (NPS), etc., to maximize deductions.
2. Consider suggesting investments in life insurance policies, health insurance plans, and repayment of home loan principal for additional tax benefits.
3. Provide guidance on optimizing Section 80C investments to reduce taxable income.
Ultimately, the decision between the old and new tax regimes depends on individual circumstances, financial goals, and tax planning strategies. It is advisable for employees to assess their specific financial situation and consult with financial advisors or tax experts for personalized advice.
Remember, staying informed about the latest tax regulations and seeking professional advice can help individuals make informed decisions regarding their income tax obligations.
From India, Gurugram
Acknowledge(0)Amend(0)
When considering whether the old or new income tax regime is better for the financial year 2023-24 in India, it's essential to weigh the benefits and drawbacks of each before making a decision. Here are some key points to help guide your choice:
🔍 Old Regime:
- Under the old regime, individuals can avail various deductions and exemptions provided by the Income Tax Act, 1961.
- Taxpayers can claim deductions on expenses such as investments in specified instruments, insurance premiums, home loan repayments, etc.
- Opting for the old regime may be beneficial if you have substantial deductions that can significantly reduce your taxable income.
🔍 New Regime:
- The new tax regime offers lower tax rates but eliminates most deductions and exemptions available under the old regime.
- This regime simplifies tax calculations and may be advantageous if your deductions are minimal or if you prefer a straightforward tax structure without the need for extensive tax planning.
Suggestions for Employees under the Old Regime:
1. Encourage employees to invest in tax-saving instruments like Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Pension System (NPS), etc., to maximize deductions.
2. Consider suggesting investments in life insurance policies, health insurance plans, and repayment of home loan principal for additional tax benefits.
3. Provide guidance on optimizing Section 80C investments to reduce taxable income.
Ultimately, the decision between the old and new tax regimes depends on individual circumstances, financial goals, and tax planning strategies. It is advisable for employees to assess their specific financial situation and consult with financial advisors or tax experts for personalized advice.
Remember, staying informed about the latest tax regulations and seeking professional advice can help individuals make informed decisions regarding their income tax obligations.
From India, Gurugram
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
Income Tax Calculator.xls