Stay updated with breaking news from Section 80c. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
Budget 2023 made the new income tax regime the default regime. Since this regime doesn’t give Section 80C benefits, ELSS, or tax-saving mutual funds, have lost their tax-benefit edge. Aside from taxpayers who would still opt for the old tax regime, it remains to be seen if ELSS funds can sell themselves purely on performance.
Success in ELSS investment is primarily a function of time rather than timing, Gagrani said, advising investors to opt for a systematic investment plan (SIPs) in ELSS to mitigate the impact of market timing on long-term returns.
Old Tax Regime vs New Tax regime: The Union government in Budget 2023 made the New Tax Regime a default choice. If a taxpayer does not choose between the old and new tax regimes, then their taxes will be automatically calculated under the new regime.
Taxpayers opting for Old Tax Regime can save taxes by investing in tax saving FD schemes, life insurance premium, tuition fees, home loan principal repayment. Fixed deposits are one of the best tools for tax saving.
With an emphasis on banking products, below are some financial instruments which can be used as investment and tax saving purpose.