Jagran Dialogues | How to avail maximum income tax deduction? Which tax regime is better? All queries of taxpayers answered by experts
New Delhi | Abhinav Gupta: Financial planning and money management is not rocket science. But for a middle-class taxpayer, making an informed decision can be a cumbersome task, as not all hold an expertise in handling the finances.
With March 31 nearing, the taxpayers have several questions in their mind, from choosing between the two income tax slabs to picking up the right investment options for maximum gains to understanding the complexities of the tax system.
Bringing solutions to all such queries, Jagran New Media’s senior journalists Abhinav Gupta and Manish Mishra held a deep-diving panel discussion with tax experts Balwant Jain and Aseem Chawla as part of the organisation’s new initiative Jagran Dialogues.
During the interaction, Mr Jain and Mr Chawla answered a volley of questions on the new and old tax regimes, making the right selection from the host of investment options and also provided some valuable tips for taxpayers belonging to different age groups. They also suggested ways to put the money at the right place in order to save more on tax deductions.
Here are the excerpts from the Jagran Dialogues panel discussion:
Q. Which of the two tax regimes - the old and the new one - will be a more suitable choice for a taxpayer?
A: If a person is salaried and is not claiming any benefits like LTA, HRA or home loan, there is no standard answer to choose from the two tax regimes and depends on his tax liability which he will have to calculate taking into his investments.
The salaried taxpayers can exercise the option of choosing from the tax regimes every year but those having business income can return to their previous tax regime only once.
Also, I would like to inform the salaried viewers that it is necessary for them to choose the same tax regime submitted before the employer as mentioned in the ITR.
Q. Income tax liability can be reduced in two ways, one by spending and the other by saving. Please suggest us the best possible ways to save on taxes.
A. Life insurance premium is considered a major expense which can be mentioned to get deduction under Section 80C. Also, I would like to tell you that parents can also pay the life insurance premium for their children to get deductions under 80C, if the latter’s bucket of 80C is overflowing.
Another expense which can be included to avail tax deduction under 80C is mediclaim and also the home loan repayment, if you consider it as an expense.
Another item considered as a major expense is health insurance, which you can take for yourself and your family, and your parents too and avail up to Rs 25,000 in each of the cases. If you or your parents are senior citizens, then this limit extends to Rs 50,000.
Watch the full interview here:
Posted By: Abhinav Gupta