Income tax: Four money-saving tips to get on track for 2024

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how to plan your taxes and why is it important If you still haven't had a chance to understand the two regimes (new tax regime, old tax regime), now is a good time to see which one would work best for you. If you have income up to ₹7 lakh then the new tax regime is better, as there is no tax up to ₹7 lakh and additionally, there is a standard deduction of ₹50,000 in the new tax regime.

As per the changes proposed in Union Budget 2023, no tax would be levied on people with annual income of up to ₹7 lakh under the new tax regime but it made no changes for those who continue in the old regime that provides for tax exemptions and deductions on investments and expenses such as HRA. “Even though you have the option to switch to a more favourable regime at the time of filing your ITR, it would be better to learn to manage taxes easily, so that TDS takes care of your tax outgo based on whichever regime is beneficial to you," said Archit Gupta, Founder, and CEO, Clear.

Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here The old tax regime that comes with exemptions on certain investments and expenditures will remain attractive for taxpayers who pay house rent or have a home loan.

Archit Gupta said that individuals opting for the old regime, should make efforts to maximise Section 80C deduction where total taxable income can be reduced by ₹1.5 lakh. There are many options available based on your risk profile and your time horizon to invest.

Many taxpayers who opt for the old regime don't maximise Section 80C and hence end up paying some extra tax, Gupta added. Stock markets have been volatile lately, and this can be turned into a big