Union Budget 2023: If you are an Indian taxpayer and it is very important for you to understand how these changes will affect you and your pocket. With the right tax planning, you can reduce your tax liability and maximize your savings.
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Budget 2023 : While announcing the Budget 2023, Finance Minister Nirmala Sitharaman has made several changes in the tax system. If you are an Indian taxpayer, then it is very important for you to understand how these changes will affect you and your pocket. With the right tax planning, you can reduce your tax liability and maximize your savings. Let us also tell you how you can save thousands of rupees with this new tax system.
1. Review your income and expenses
The first step in tax planning is to review your income and expenditure for the financial year. This includes all sources of income such as salary, business income, rental income, capital gains and many more. You also have to take into account the deductions or reliefs that you are eligible for.
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2. Know the latest tax changes
- The Government of India has made many changes in the tax system in Budget 2023.
- There was no increase in the limit of standard deduction for salaried people, but its benefit will also be given in the new regime.
- A new tax regime with lower tax rates but without exemptions and deductions.
- Increase in tax rate for individuals with annual income of Rs 2 crore or more.
3. Take advantage of tax saving instruments
One can reduce the tax liability by availing tax saving instruments like Public Provident Fund (PPF), National Pension System (NPS), Equity-Linked Savings Scheme (ELSS), and others. These instruments not only help you save tax, but they also provide long term investment opportunities.
5. Avail the benefit of HRA
If you are a salaried employee, you can avail House Rent Allowance (HRA) benefit. Through this exemption, you can claim your rent as tax deduction. To avail this benefit, you must have rental receipt and other related documents.
6. Make tax saving investments
Many tax saving scheme options are available in the market. Such as tax free bonds and National Pension System (NPS). They offer tax benefits and can be invested for the long term, allowing you to save tax comfortably.
7. Take advice from a tax professional
Lastly, if you are doing tax planning for 2023 but are unsure how to go about it, consult a tax professional. A tax expert can help you understand the new changes in the tax system and increase your savings while reducing your tax liabilities.
Source: www.tv9hindi.com”