New finance act: The downside for investors on withdrawal of tax nudges
Tax nudges are an effective way to encourage people to save in the right way
The revised new tax regime has become the default regime with effect from 1 April, and long-term capital gains and indexation benefit will not be applicable on debt, international and gold funds. These changes have left investors even more confused about which regime to choose and where to invest. Can I ask my firm not to deduct money for employee provident fund? Why are certain deductions like house rent allowance (HRA) not allowed? Should I stop contributing to the National Pension Scheme (NPS) as the deduction under Section 80CCD 1& 1B is not applicable under the new tax regime? These are some of common queries they ask about the new tax regime.