How to optimise Tax Savings under New Tax Regime in FY24?

Finance Minister Nirmala Sitharaman revised the income tax slab rates under the new tax regime in Budget 2023. Tax savers should allocate their investments more intelligently now that the new financial year, FY24, has begun in order to meet their financial goals while also lowering their tax bill. Taxpayers must be informed about the changes and solutions available to reduce their taxes when the new tax system goes into force in FY24.

Here are some recommendations from industry experts to help you get started:

1. Plan your investments:

Invest in tax-deductible instruments such as the Public Provident Fund (PPF), the Equity-Linked Saving Scheme (ELSS), the National Pension Scheme (NPS), and tax-saving fixed deposits. This will not only help you reduce taxes, but it will also help you generate good profits.

2. Claim all possible tax deductions:

Make certain that you claim all applicable tax deductions. Deductions for home loans, college loans, health insurance payments, and medical expenses, for example. These can have a significant impact on your taxable income.

3. Use Section 80C to your advantage:

Use Section 80C to its maximum potential by investing in tax-deductible schemes like as PPF, ELSS, NPS, and tax-saving fixed deposits. The highest limit for this section is Rs.1.5 lakh, so make sure you invest wisely.

4. Choose the new tax regime if it helps you:

The new tax regime lowers tax rates but does not allow for deductions. As a result, if you do not have any major deductions to claim, the new regime may be more advantageous.

5. File your tax returns on time:

To avoid fines or interest payments, make sure you file your tax taxes on time. E-filing your returns also expedites and simplifies the procedure.