Before opting for the new income tax regime introduced in the Budget 2020, you must know its benefits offered by the government. An important point to note is that no deductions or exemptions will be allowed to the taxpayers opting for the new reduced tax slabs.
You must be wondering why you should invest in a tax-saving instrument when there are no benefits. It’s time to reconsider your financial planning and make adjustments based on your long-term financial goals. It may not be a good idea to commit yourself to any long-term investment that requires a yearly contribution with the motive of saving your taxes.
Also Read: 7 Tips to Earn Better Returns From Mutual Funds Investments
Here is the list of tax-saving products that do not require a mandatory yearly contribution or need a small amount every year to keep the account operative:
You must evaluate all the financial products, compare them with others, and only then invest your money. The product must fit your long-term financial goals and provide security instead of offering tax incentives only. Decide and act wisely.
For any clarifications/feedback on the topic, please contact the writer at komal.chawla@cleartax.in
I am an aspiring Chartered Accountant. I spend most of my free time dredging through the various Indian finance subreddits. I am a semi-professional bowler with a high strike rate every time there is a new tax reform!
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