The new tax regime offers fewer tax deductions and exemptions compared to the old tax regime, which provides various deductions under Chapter VI A from taxable income.
Deepak Ramaraju, Senior Fund Manager at Shriram AMC discusses global and domestic market conditions, predicts a market rebound post-elections, and recommends ELSS for tax-saving and long-term capital appreciation
Budget 2023 made the new income tax regime the default regime. Since this regime doesn’t give Section 80C benefits, ELSS, or tax-saving mutual funds, have lost their tax-benefit edge. Aside from taxpayers who would still opt for the old tax regime, it remains to be seen if ELSS funds can sell themselves purely on performance.