As announced in Finance Minister Nirmala Sitharaman’s 2023 Budget speech, the revised new personal income tax system will not allow for much of the tax deductions and exemptions available under the old tax system.
So you must first check which tax regime is better for you based on your salary and claim tax exemptions and deductions. If the old tax regime still works for you, then tax-saving investments play an important role.
Tax Saving Tips 2023: From PPF, ELSS to NPS & ULIPs – Top Tax Saving Investments
In this week’s episode of TOI Wallet Talks, Ektha Surana, tax expert at Clear (formerly ClearTax), recaps the tax-related changes in popular investment vehicles over the last few years.
For example, from April 2023 a person will have to pay tax on the maturity amount of life insurance policies (excluding ULIPs) if the total annual premium exceeds Rs 5 lakh.
Also, if you wish to invest in the Equity Linked Savings Scheme (ELSS) please note that ELSS only has EEE tax status if you choose the growth option and ensure capital gains on repayment do not exceed Rs 1 lakh.
If the employer’s total contributions to the EPF, NPS and the pension fund exceeds Rs 7.5 lakh, the excess amount becomes taxable in the hands of the person concerned. Interest on excess premiums is also taxable
Watch the video above to learn more about popular tax-saving investments and which ones to consider – Public Provident Fund (PPF), National Pension Scheme (NPS), ELSS, Insurance Policies, Sukanya Samriddhi Scheme, Unit Linked Insurance Schemes or others.
Also, watch the video to find out the rules of thumb for tax-based investment planning so you can make an informed decision about your investment needs.
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