Old vs New Regime | Which is better? Tax Saving Options | Income Tax Planning Guide 2024

Income taxation in India has become complex with the introduction of the Old Regime vs New Regime. Individuals often struggle to determine the better option for tax payments. This is the season for proof submissions, and delaying action can result in significant tax payments in February or March. To avoid this, individuals earning 5L or more should refer to the table shown for regime comparison based on yearly salary and deductions.

Salaried individuals can change their regime while filing the Income Tax Return (ITR) if they become eligible for additional deductions or exemptions during the year.

Deductions play a crucial role, covering areas like home loans, investments, donations, and company reimbursements. The provided chart illustrates various deductions under the Old Tax Regime for a hypothetical annual income of 10L.

Exemptions and deductions differ; exemptions mean a portion of income is entirely tax-free, while deductions reduce taxable income. The first level of exemption is the EPF (Employer's Contribution), accounting for 12% of the basic pay. Deductions include standard deduction, home loan interest, and various investment options under sections 80C, 80D, 80E, etc.

When considering investments, emphasize term insurance over high-premium policies. Term insurance offers substantial coverage with minimal premiums. Ensure insurance choices align with your family's needs. Use reputable platforms like Policybazaar to compare and choose the right policy for tax deductions.

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Avoid common mistakes like obtaining a house loan solely for tax benefits, making meaningless investments for tax saving, or opting for ULIP plans. Utilize joint housing loans for maximum benefits, validate HRA proofs, and avoid fake proofs. Strive for maximum deductions, but prioritize investments aligned with broader financial goals.

Lastly, be cautious about common mistakes in tax-saving efforts. Saving taxes should be incidental, not the primary driver of investment decisions. Prioritize investments aligned with financial goals, as chasing short-term tax breaks may not contribute to long-term wealth growth. Focus on investments with higher potential returns, even if they offer less immediate tax relief.

Courtesy : Asset Yogi

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[vaithees]

I SAW MANY VIDEOS but Nobody has explained like this in detail. Thanks for your details. You are putting lot of efforts for your Every video

[wisdomfactsinfo]

Thanks Anna, romba usefula irundhuchu ❤

[dayal]

Very useful and explained in layman terms...thanks bro...we are expecting more videos like this from you..🎉

[ramprasad_]

Much accurate and clearcut points on every single video. As a 21yr old boy seeing his video has already made a terrric change in my investment jouney. Already feeling immense pleasure to this guy and to his work. Your so good sir and thank you ♥️✨

[samprabhu]

Hi bro,
Very clear video👍..
Could you please explain below things,
1) In standard deduction of Rs.50, 000 (simply we can reduce Rs.50, 000 from salary..? )

2) Where should mention the interest income which we receive from bank F.D (1 or 2 years F.D)

3) Where should we mention interest income receive from property

4) Where should we mention STCG or LTCG .?

Please explain where should we mention above things in your excel sheet.

Mainly this STCG, LTCG is very confusing and don't knwo where to het that statement and also what to do with that

[surya]

Very informative. Thanks for the clear cut video

[SenthilKumar-onqw]

Very useful and needed video bro..thanks a lot ☺️

[endrumenedhu]

I always like the way you deliver the content..great and helpful..much appreciated

[mohanasundhra]

Thanks for the Useful Information Anna...❤

[subbarayalumohandoss]

Bank FD ஐந்து ஆண்டுகள் போடுவதற்கு பதில், NSC V111 issue வில் முதலீடு செய்யலாம் . அதில் வட்டி அதிகம். மேலும் Accrued int ஐ 80C ல் காண்பிக்கலாம்.

[ItsMeRamKumar]

It's very clearly explained brother. Thanks a lot 😊

[praveenkumarg]

Your videos are very useful bro thank you ❤

[akshayarathina]

😭😭😭 ivlo naal enga irntheenga 😢, thanks a lot

[jagadeeshraj]

Great thank you... Excellent knowledge sharing. Kindly post the video, how to file the ITR and get the refund.

[umaranisampathkumar]

Your tax vedio is good. Post one vedio how to fill tax for the systematic withdrawal plan investment for a non salaried employee.

[manojkumar_sm]

Bro, please explain Fund of Fund ( FoF), i saw few nasdaq 100 funds which is better to invest via FOF or direct investment in US Stocks.

[hasanmeerashahib]

Thanks for Tamil explanation.
I've noticed you mentioning standard deduction for salaried people, but it is applicable for all individual filers.
In my understanding, difference in Exemption & deduction is-
Exemption is applicable only to Salaried people (impact head Income from Salary) while
Deduction is applicable for all individual filers ( impact Taxable income ).
In terms of meaning both nature is same.
Please correct if I'm wrong. Thanks again for understanding and sharing your knowledge.

[srivasang]

Can your share your insights on how an NRI can invest in Indian stocks? What brokerage apps you suggest ? what are the tax differences on capital gains for NRI and Resident Indian. Thanks

[selvaprakash]

Hi, if you dont mind could u pls share what video making tools (camera, sotware, microphones etc) you use to create your videos? Thanks

[CA_Surajdeo]

👉Want to add few points for people who make some COMMON MISTAKES while focusing on TAX SAVING:
1. Saving taxes should be incidental, not the primary driver of your investment decisions.
2. Prioritizing tax savings can lead to suboptimal choices. So, Investments should primarily align with your financial goals like child education, wealth creation, retirement planning, Buying a Car, or House, Foreing trips (WHY NOT) etc.
3. Chasing tax breaks with short-term investments might provide momentary gains but may not contribute to long-term wealth growth. Focus on investments with higher potential returns, even if they offer less immediate tax relief.