New tax regime? These three 80C investments still make sense

Summary: Unlike the old tax regime, which provided exemptions like 80C, the new tax regime doesn’t have many such benefits. Yet, certain 80C investments still hold value, even for taxpayers under the new regime. We look at three such options. The last quarter of the financial year often feels like tax-saving time. For years, January to March saw a flurry of activity as taxpayers rushed to make last-minute investments under Section 80C – a move that not only saved taxes but also helped build long-term wealth. However, times have changed. With the government's push towards the new tax regime, which offers lower tax rates but removes popular exemptions like 80C, the earlier rush to hunt for the ideal tax-saving investments seems to be fading. In fact, approximately 72 per cent of tax filers have already shifted to the new tax regime, according to government data. But here's the twist: some 80C investments still hold immense financial value, even without tax breaks. Let's explore three such options that can strengthen your portfolio. #1 ELSS: The three-year lock that unlocks smart investing For new investors, the equity market's volatility can feel intimidating. Many panic during market dips and exit too soon, missing out on long-term wealth creation. That's where Equ

This article was originally published on January 09, 2025.