How Much Tax You Need to Pay?

Budget has been a historic one for middle class.

Have a look at above image to understand that how 7 Lakh is tax free in new tax regime and remember that it is courtesy 87A rebate.

Trade accurately using our bank Nifty options on a daily basis.

Our understanding on budget 2023.

1. No change in old income tax.

2. Changes are in new income tax. 

3. New income tax is default, which means one have to opt for old.

4. If someone is using all available exemptions…… it appears to be beneficial with old tax regime. Calculate beforehand in making investments in FY 23-24.

5. Increase limit of Senior Citizens Saving Scheme and Monthly Income plan…… use only and only if 

(a) you need cash flow on regular basis 

(b) you are averse to risk taking and want ‘negative’ post tax returns inflation adjusted returns. (interest on both this scheme will be taxed as per your slab).

6. Saving schemes for women…. Interest 7.5% . Tax on interest. Lot of banks are offering 7-7.5% interest ….don’t wait for it. 

7. If you get nervous with short term gyrations in equity……. Have asset allocation , Invest in balance fund or multi asset fund. Kotak multi asset fund is one such( invest after due diligence) 

8. Adani saga is going to play for some more time with spillover on banks and few other sectors….. ( FPO is cancelled) …..brace for more volatility. 

9. Keep some cash to invest at right opportunity.

This is the case even when you use Sec 87A for income upto 5L in old regime(after Std Ded and 80C).. you may have to work out your income of future and choose wisely. 

But we feel, if the income is above 12L and not having a home loan, New Tax Regime will be beneficial