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Samkit Maniar  | Answer  |Ask -

Tax Expert - Answered on May 27, 2024

CA Samkit Maniar has eight years of experience in income tax, mergers and acquisitions and estate planning.
He has graduated from Mumbai’s N M College of Commerce and Economics and has completed his CA from The Institute of Chartered Accountants of India."... more
Asked by Anonymous - Mar 11, 2024Hindi
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My Salary income is 6LPA also I have STCG of 3LPA but now I have incurred loss of 1LPA. What tax planning should I do to save taxes as my total income is 8LPA. Should I go with old or new tax regime also what deduction should I opt for how much

Ans: Old regime will make more sense for you.

PPF / LIC / ELSS - 150000
MEDICLAIM - 50000
MEDICLAIM FOR SENIOR CITIZEN PARENTS - 25000
NPS - 50000
HRA at actuals. Housing loan / Student loan / Donation also at actuals.

Please take your CAs advice before moving ahead.
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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Ramalingam

Ramalingam Kalirajan  |6986 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

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My salary is around 29LPA. I am an unmarried male living in new delhi with my mother. I am really bad at tax planning hence asking here. How should I plan my taxes i.e. should I opt for new regime or old regime? I have recently lost about 50K against my variable. I just have one car loan which I will be closing in few months but apart from that I don't do any investments but can invest as adviced.
Ans: Effective tax planning can save you a significant amount of money. Let's evaluate whether the new or old tax regime is better for you and suggest suitable investment options.

Understanding Tax Regimes

Old Tax Regime: Offers various deductions and exemptions like 80C, 80D, HRA, etc.

New Tax Regime: Has lower tax rates but no exemptions or deductions.

Evaluate Your Situation

Since you are not currently investing, your deductions are likely limited. Let's compare both regimes.

Old Tax Regime

80C Deduction: You can invest up to Rs 1.5 lakhs in various instruments like PPF, EPF, ELSS, etc.

80D Deduction: Health insurance premiums up to Rs 25,000 for yourself and your mother.

HRA and Home Loan Interest: You don't have these, so they won't apply.

New Tax Regime

Simplified Structure: Lower tax rates but no exemptions or deductions.
Comparative Analysis

Old Regime: Beneficial if you can claim significant deductions.

New Regime: Suitable if you prefer a simpler structure without investing for deductions.

Tax Slabs Comparison

Here’s a simplified comparison of tax slabs:

Old Regime:

Up to Rs 2.5 lakh: Nil
Rs 2.5 to 5 lakh: 5%
Rs 5 to 10 lakh: 20%
Above Rs 10 lakh: 30%
New Regime:

Up to Rs 2.5 lakh: Nil
Rs 2.5 to 5 lakh: 5%
Rs 5 to 7.5 lakh: 10%
Rs 7.5 to 10 lakh: 15%
Rs 10 to 12.5 lakh: 20%
Rs 12.5 to 15 lakh: 25%
Above Rs 15 lakh: 30%
Optimal Investment Strategy

Considering your current situation and future goals, here are some recommendations:

Section 80C Investments

PPF: Safe and offers good returns. Lock-in period of 15 years.

ELSS: Equity-linked saving schemes with a lock-in period of 3 years.

EPF: If you contribute to the Employee Provident Fund.

Health Insurance (Section 80D)

Health Insurance: Cover yourself and your mother. Get tax benefits up to Rs 25,000.
Additional Investments

NPS (Section 80CCD(1B)): National Pension System offers an additional Rs 50,000 deduction.

Term Insurance: Essential for financial security. Get tax benefits under 80C.

Comparing Deductions

If you can invest Rs 1.5 lakh in 80C, Rs 25,000 in 80D, and Rs 50,000 in NPS, your total deductions would be Rs 2.25 lakh. This would make the old regime more beneficial.

Benefits of Actively Managed Funds

Expert Management: Fund managers make informed decisions.

Potential for Higher Returns: Aim to outperform the market.

Disadvantages of Index Funds

Lack of Flexibility: Index funds simply track a market index.

Lower Return Potential: Aim to match market performance, not exceed it.

Final Insights

For effective tax planning, consider the old regime if you can utilize the deductions. Invest in PPF, ELSS, and health insurance. Also, consider NPS for additional benefits. Consult a Certified Financial Planner for tailored advice and better financial planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Anu Krishna  |1281 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 07, 2024

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Anu

Anu Krishna  |1281 Answers  |Ask -

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Help me!!! 1.I'm starting new "work" on my own(challenging for me) but my mind says quit it, be quite & do nothing. I myself don't know that wether the result of work will be +ive or uncompleted like alws. 2. My mind has become like order seeker type, when someone orders me, I do those things with dedicated(but sad from inside) manner. But when myself will try something different(which i fear, but necessary) then. "I QUITS IT" & sometimes I don't even start. 3. I'm like stuck no clue what/whom I want to do in life, I'm in cllg(1 yr) doing (CSE) ,. 4. I want to do/try (sports,talking girls,study,stocks,coding..) many things, but myself, my thoughts(overthinker), R like just be in the place where u are[confused,po*n,think about past/future(being billio..re,olympics..), girl (that u liked & never talked), abusive/beating self,.. sometimes feels like end life, but don't hv courage for that also.. 5. I tried self help books, spirituality, god, self affirmation, writing... & thay affected me(sometimes) but for only some time, then again that devil me comes up &these things never get completed. As no one in my family knows about all these, so that's Y ,I hv to fight/loose/try again, the battles with myself.
Ans: Dear Harsh,
If in the past you have had the urge to QUIT, how is this time going to be different? This is not to discourage you from taking up 'new work' but pointing out that there is some amount of work that you need to put to clear the mind out of blockages.
-What is limiting you?
- What is the reason for putting off things?
- What comes first to the mind when you start something new?
Also, focus on one thing at a time; study and go deep into it...what's this thing with work? I don't understand. When the mind is unsettled, take one thing/activity, pursue it and finish it. It could simply be studying for Year 1 of your college...just only do that...once your mind is trained in completing an activity, you can add another one the next year along with studying and then pursue both...it could be some sport and studying...then the next year, you could add a third activity. This is called 'training the mind in discipline'. Discipline will make sure that you start and finish things...So, go slow and do one thing at a time.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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