Income Tax New Update: Every salaried class person living in the country has to pay income tax. The tax regime is decided by the Income Tax Department. The tax has to be paid according to this. The Income Tax Department has created five new methods under the New Tax Regime, under which you can save a lot of tax. You need to know these things. Let us know in detail about this information related to tax.

Tax is calculated automatically-

From the financial year 2024-25, the New Tax Regime has been made the default tax system in India. This means that if you do not choose the old tax system yourself, then your tax is automatically calculated according to the New Tax Regime. In the new system, the tax slab rates have been reduced. However, it does not provide the tax benefits that were available in the old system, such as 80C, 80D, HRA, or exemption of interest on home loans. In such a situation, you can calculate it yourself.

These people will benefit, while these people will suffer loss-

If you did not claim much tax benefit in the Old Regime, then your tax savings can be more in the New Regime. On the other hand, if you were given the full benefit of exemptions like 80C, HRA, or home loan through the old system. More tax can be levied for them in the new tax regime. Because of this, you must compare the calculation of your tax liability correctly in both options. An online tax calculator can help you a lot with this.

Use these methods-

Now if you are also included in the list, then you can save money in the new tax regime. You can adopt these 5 smart ways and useful ideas.

1. Invest for long-term goals-

Now there is no pressure of investment required for 80C, but future planning is necessary. Options like SIP, mutual funds, PPF, or debt funds are included.

2. Pay off high-interest debt-

If you have credit card dues or personal loans (Personal loan tips), then you must invest the remaining tax money in it. This will also reduce the financial burden considerably.

3. Create or increase an emergency fund-

Keep at least 6-12 months' expenses for emergencies. This money can be kept in a savings account or liquid fund.

4. Take the right insurance cover-

Take health and term life insurance not to save tax but for proper protection. If the coverage is low, then this tax saving can be useful in increasing it.

5. Invest in upskilling as well-

If you are planning to invest in learning new skills or improving existing skills (Investment Tips), then earning capacity can be increased due to this.

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