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Is the new tax regime demotivating me from saving and investing?

T S Khurana |383 Answers |Ask -Follow

Tax Expert - Answered on Aug 17, 2024

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Question by Visu on Jul 30, 2024Hindi

Money

because of NEW TAX REGIME, the tax payer is less focussing on savings or investments where 80C investments are no more required and pay even lesser taxes compared to old regime. In such a situation, is it not motivating the tax payer to more consumerism than to make investments. Will this attitude is good for the future senior citizens?

Ans: As an individual, you are supposed to plan for your future, keeping in view your requirements. Government may not encourage you for future savings, but you should go for savings, which yield better returns, for your future requirements.
Govt. wants more cash flow in the market so that more economic activity, more employment & many other objectives are achieved, from time to time.
Most welcome for any further clarifications. Thanks.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Doesn't this discourage younger generation from savings. As the new regime has no exemption on savings

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