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.
While the government did bring in many modifications in Budget 2023, it is expected that the budget could likely raise the basic exemption limit by at least Rs 50,000 under both the regimes.
As a first step, you should inform his company that he wants to opt for the old tax regime. Several deductions available to you will not be considered under the new regime. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
New income tax regime vs old: If you re one of those who are struggling to decide between the two , these tips can help you in making the correct choice at the last minute