The Way To Keep Income Tax In The Old Tax Regime: Schemes and deduction information
New Delhi: In Budget 2025, the authorities made a huge declaration by making the profits up to Rs 12 lakh tax-free below the new regime. The limit can be Rs 12.75 lakh for salaried taxpayers due to the well-known
Deduction of Rs 75,000. The authorities made no modifications to the antique tax regime.
Inside old tax regime, there's 0 tax on profits up to Rs four lakh. Taxpayers get many sorts of exemptions available inside the antique tax regime, which help the individuals to save tax. Here are a few investment options that
Let you get a few exemptions inside the antique tax regime.
Earnings Tax saving options in the vintage Tax Regime
The National Pension Scheme (NPS) is considered one of the best saving options for retirement. Taxpayers choosing the old tax regime can save Rs 50,000 under phase 80CCD (1B) by means of investing in this scheme.
At the same time, an extra deduction of Rs 1.5 lakh is available under 80C.
Public Provident Fund (PPF): with the aid of investing in this scheme, taxpayers can avail exemption underneath 80C. In PPF, the hobby quantity and the quantity received on adulthood also are tax unfastened.
The Unit Linked Insurance Plan (ULIP) scheme permits taxpayers to get the gain of funding along with life insurance. There is a lock-in length of five years. In ULIP, tax exemption is available at the premium, and there's no
Tax on the maturity amount.
Fixed Deposit schemes provide taxpayers with the choice to keep tax by means of investing in tax saver constant deposits (FD). Fds are conventional saving schemes and are free from stock market chance. Tax saver FD
Plans come with a lock-in period of 5 years, and exemption of as much as Rs 1.5 lakh is available beneath 80C.
The Senior Citizen Savings Scheme (SCSS) scheme offers an interest fee of 8.2 percent per annum on the funding quantity. The gain of tax deduction is to be had on the investment amount as much as Rs 30 lakh in this
Scheme.
Sukanya Samriddhi Yojana, one of the most popular schemes for female babies, permits parents to avail of tax exemptions by investing in the name of their daughters. Under this scheme, a tax exemption of up to Rs 1.5 lakh
Is available under 80C, and its returns are also tax-free.
The Equity Connected Saving Scheme (ELSS) allows investors to get a rebate of up to Rs 1.5 lakh beneath section 80C of the Income Tax Act. A person can start making an investment in this scheme with Rs 500. The
Lock-in period in ELSS is only 3 years.
In her budget 2025 speech, Finance minister Nirmala Sitharaman announced that people making an investment in NPS Vatsalya can avail tax exemption on annual contributions of as much as Rs 50,000 below phase
80CCD(1B) of earnings Tax. Sitharaman increased the tax exemption for NPS Vatsalya, and it includes sections 80CCD (1B), 12(B), and 80CCD (three). This exemption is greater than the regular Rs 1.5 lakh beneath
Section 80C.
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