Will the old savings of income tax now become history? Preparation for major changes in Section 80C and HRA

News India Live, Digital Desk: At the beginning of the month, when the message of salary receipt comes in the bank, there is happiness on the face, but as soon as the tax deduction (TDS) is seen, the heart sinks a bit. We middle class people are busy throughout the year trying to save a part of our hard-earned money from being deducted in taxes. for this Section 80C And HRA (House Rent Allowance) They have always been our greatest weapons.

But, now there is a strong discussion among the markets and experts that the government is going to make some major changes in the rules related to tax cuts and investment. If you also plan your savings based on the old tax regime, then it is very important for you to know these things.

Will the 80C limit now increase or decrease?
For the last many years we have been seeing the same stale limit of Rs 1.5 lakh. Investments like PPF, life insurance and ELSS come under its purview. Now there is discussion that to promote the new tax regime, the government may slightly limit the benefits of the old regime. Or on the other hand, this limit can also be increased to provide relief to the middle class. Whatever the reality, it is sure to affect your pocket.

Claiming HRA will no longer be so easy?
Saving tax through house rent i.e. HRA is a great help for those people who live in rented houses. But now the tax department is showing great strictness in the verification of documents. Many times we just attach the rent receipt, but now more emphasis is being given on proofs like landlord’s PAN card and rent agreement. If you are also thinking of saving tax by manipulating 80C and HRA, then be careful, because the system has now become quite smart.

New vs. Old Regime: A Big Confusion
Most people are now in a dilemma whether they should stay in the old system where deductions are available, or move to the new system where tax rates are lower but there are no exemptions. Experts say that the government wants to gradually eliminate the deductions and bring a ‘simple’ tax structure. In such a situation, it is important for you to understand how beneficial your investment is as per your tax bracket.

Overall, filing tax returns and saving taxes may be a bit tricky in the coming days. My advice is that do not wait for the last moment and plan your investment now according to these possible changes.