Tax saving questions
Choosing between regimes, what still qualifies for deduction, and how investment income is taxed.
Should I choose the old or the new tax regime?
The new regime has lower slab rates but drops most deductions. It usually wins unless you claim a large combination of 80C, HRA, home loan interest and health premium — compare both on your actual numbers each year.
What still qualifies under Section 80C?
EPF and VPF, PPF, ELSS, five-year tax-saving FDs, life insurance premium, NSC, Sukanya Samriddhi, home loan principal and children's tuition fees, capped at Rs 1.5 lakh a year under the old regime.
Is health insurance premium deductible?
Under the old regime, Section 80D allows up to Rs 25,000 for self and family and a further Rs 50,000 for senior-citizen parents, including a preventive health check-up sub-limit of Rs 5,000.
How is home loan interest treated?
Up to Rs 2 lakh a year on a self-occupied property under Section 24(b) in the old regime. On a let-out property the deduction is not capped, though loss set-off against other income is limited to Rs 2 lakh.
Does NPS give a deduction beyond 80C?
Yes. Section 80CCD(1B) allows an extra Rs 50,000 for self-contribution under the old regime, and employer contribution up to 14% of salary is deductible in the new regime as well.
How is capital gains tax calculated on equity?
Long-term gains on listed equity held over 12 months are taxed at 12.5% above the annual exemption; short-term gains at 20%. Indexation is no longer available for most assets acquired after 23 July 2024.