Please suggest the relevance of having ELSS in the new tax regime where deductions are not allowed.
- Swapnil
Right now, you can go either with the old regime or the new one. The old regime allows certain tax deductions, whereas the new regime does not allow many of the otherwise available deductions but taxes you at a lower rate in return.
If you are choosing the new method, you don't need to worry about ELSS. But depending on your income and salary structure, if you find that the tax calculation under the old regime is more beneficial to you, then use ELSS. Further, you can invest in NPS to claim a deduction of additional Rs 50,000 under Section 80CCD(1B).
This article was originally published on September 29, 2020.
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