The Finance Minister has introduced new tax regime for tax payers in the country. This article will guide you on tax slabs under both old regime vs new regime.
The new tax regime comes without many of deductions under various sections. Around 70 income tax deductions can’t be claimed under new tax structure. Here we want to highlight that every tax payer has to calculate the amount of taxes under both the regime and decide which one is better. There is no doubt that the structure which pays less tax is better for the individual.
New tax regime does not consider age for tax calculation. This means that tax slabs are common across the age. However in old regime the basic income tax exemptions start from Rs 3 lakh in case of senior citizens (aged 60 to 80 yrs) and Rs 5 lakh for senior citizens above 80 years of age.
How to reduce tax?
- You can claim a combined deduction of Rs 150000 under sections 80C, 80CCC and 80CCD(1). Under these sections you can investment in lot of investment schemes but today we will highlight best scheme for you.
- The scheme which we are going to present to you will provide twin benefits under 80C section and under 10(10D). Section 10(10D) says that the maturity amount which you will earn in scheme will be absolutely tax free.
- This is unique benefit under this scheme and you will be surprised to know that the scheme will provide regular income per annum for fixed period of time.
- The name of the scheme is ICICI PRUDENTIAL GURANTEED INCOME FOR TOMORROW (GIFT) PLAN.
ICICI PRUDENTIAL GURANTEED INCOME FOR TOMORROW (GIFT) PLAN.
- This is a unique plan that offers guaranteed income to the life insured along with twin benefits of life insurance and qualifies under tax deduction of Rs 150000 under section 80C.
- The best thing about the plan is income tax benefit under 10(10D). Any amount you will receive is free from tax. This is unique benefit of scheme. In India, very few investments have this benefit. There are lot of investment options that saves taxes under section 80C but most of them taxed at maturity.
- Another unique feature of the scheme is guaranteed regular income per annum for fixed period of time. Let’s understand this through an example of Rs100000 premium for different periods.
- The plan also offer the death cover of 10 times the Annual Premium.