Schedule a Call and Get a Personalized Tax Saving Plan
- Bhavika Rajput
- 1 day ago
- 9 min read
Tax planning is an essential part of personal finance management. With the ongoing changes in tax regulations, understanding the best ways to save taxes and optimize your tax returns has never been more important. If you're looking to maximize your tax savings and ensure that your financial strategies align with the latest tax rules, scheduling a call with a tax expert to get a personalized tax-saving plan is the best first step. A tailored plan takes into account your income, deductions, investments, and tax regime preferences, ultimately guiding you toward the most efficient tax-saving strategies. Here’s how the process works.
Table of Contents
Understanding the Process: Schedule a Call and Get a Personalized Tax Saving Plan
The first step in receiving a personalized tax-saving plan is to schedule a call with a tax expert or advisor. During this consultation, you’ll be asked to provide details about your financial situation, including your income sources, investments, and any existing tax-saving instruments you’re currently utilizing, such as ELSS, PPF, NPS, and insurance premiums. Based on the information you provide, the expert will analyze your financial profile and tailor a tax-saving strategy suited to your unique needs. This personalized consultation ensures that the strategies you adopt are relevant to your financial goals, tax obligations, and risk appetite.
Initial Contact and Information Collection
Once you’ve scheduled your call, the tax expert will guide you through the necessary steps to collect your financial information. This might include sharing documents such as your salary slips, Form 16, proof of investments, and other relevant financial records. The more detailed and organized your financial information, the more accurate and efficient the tax-saving plan can be. Expect to be asked questions about any expected changes in your income or investments, as these can have a significant impact on the final recommendations. Information on your eligibility for tax benefits under various sections (like 80C, 80D, etc.) will also be part of this process.
Personalized Tax Saving Plan Development
Once your financial details have been gathered, the tax expert will analyze your current situation and draft a personalized tax-saving plan. This plan will focus on maximizing your eligible deductions and exemptions, optimizing your investments, and determining which tax regime—old or new—provides the best benefits for you. The expert will help you evaluate the pros and cons of both tax regimes, showing you how each affects your tax liability. Additionally, the plan will include recommendations on various tax-saving instruments and strategies, such as making contributions to the National Pension Scheme (NPS), purchasing health insurance, and investing in tax-saving fixed deposits, among others.
Action Items and Ongoing Support
Once your personalized tax-saving plan is ready, the tax expert will walk you through the steps you need to take to implement the strategy. This could involve making specific investments, filling out forms for deductions, or taking advantage of certain exemptions. Depending on the complexity of your plan, the expert may provide step-by-step guidance on how to implement each action item effectively. Additionally, ongoing support will be available to ensure that you’re making the most of your tax-saving opportunities, and adjustments can be made if your financial situation changes during the year.
Is the New Tax Regime or Old Tax Regime Better for You?
When it comes to tax planning, one of the most important decisions taxpayers need to make is whether to opt for the new tax regime or the old tax regime. Both options have distinct advantages and limitations, and choosing the right one depends on several factors such as your income, the available deductions, and your long-term financial goals. Let’s dive deeper into both tax regimes and how to determine which one works best for your financial situation.
New Tax Regime: Key Features
The new tax regime, introduced in FY 2020-21, provides a simplified tax structure with lower tax rates across various income slabs. However, it comes with a significant trade-off: you cannot claim most exemptions and deductions that were available under the old regime. This includes popular tax-saving options such as:
Section 80C deductions (e.g., PPF, LIC premiums, EPF, etc.)
Section 80D deductions (health insurance premiums)
Interest on home loan under Section 24(b)
These deductions and exemptions are powerful tools that reduce taxable income and, consequently, the overall tax burden. With the new regime, taxpayers are no longer able to take advantage of them, although they benefit from lower tax rates.
Here are the tax rates under the new regime for FY 2024-25 (Assessment Year 2025-26):
Income tax slabs (Rs) | Income tax rate (%) |
From 0 to 3,00,000 | 0 |
From 3,00,001 to 7,00,000 | 5 |
From 7,00,001 to 10,00,000 | 10 |
From 10,00,001 to 12,00,000 | 15 |
From 12,00,001 to 15,00,000 | 20 |
From 15,00,001 and above | 30 |
This simpler approach allows taxpayers to file returns with fewer calculations and reduced documentation, but it may not be advantageous for individuals who would benefit significantly from various deductions and exemptions.
Old Tax Regime: Key Features
The old tax regime offered higher tax rates compared to the new regime, but the significant advantage is the ability to claim a wide range of exemptions and deductions. For individuals with substantial tax-saving investments and expenses, the old tax regime can lead to considerable savings.
Under the old tax regime, you can claim deductions under:
Section 80C: This allows deductions of up to ₹1.5 lakh for investments such as PPF, NSC, life insurance premiums, and ELSS.
Section 80D: Deduction for premiums paid on health insurance policies.
House Rent Allowance (HRA): Claimable if you live in rented accommodation.
Interest on home loan under Section 24(b) for up to ₹2 lakh.
These deductions, along with others like those for education loans and charitable donations, reduce the overall taxable income, often making it a better option for individuals with higher expenses in these areas.
The tax rates under the old regime for FY 2024-25 (Assessment Year 2025-26) are as follows:
Income Range (₹) | Tax Rate |
Up to ₹2.5 lakh | Nil |
₹2,50,001 to ₹5,00,000 | 5% |
₹5,00,001 to ₹10,00,000 | 20% |
Above ₹10,00,000 | 30% |
Which Tax Regime is Better for You?
The choice between the new tax regime and the old tax regime depends largely on your income profile and your eligibility for deductions. Here’s a simple way to evaluate which option is better for you:
1. Assess Your Income and Deductions
If you don’t have significant deductions (like HRA, 80C, or 80D), the new tax regime may be the better option due to its lower tax rates.
If you can claim substantial deductions, especially under Section 80C and 80D, the old tax regime could result in a lower effective tax rate because these deductions significantly reduce your taxable income.
2. Estimate Your Taxable Income
Let’s consider an example: If your total taxable income is ₹12 lakh, the old tax regime with deductions like 80C, 80D, and HRA may lower your taxable income, bringing your tax rate closer to 15%-20% after deductions, which could be lower than the 20% rate in the new tax regime.
On the other hand, if you are not eligible for significant deductions or if they don’t substantially reduce your taxable income, the new tax regime with a tax rate of 15% (for ₹7.5 lakh to ₹10 lakh income) will be more beneficial.
3. Consider Your Financial Goals
If you prioritize tax savings through investments, such as saving for retirement, health insurance, or housing, the old regime is likely to work better.
If you prefer a simplified approach and don’t have significant tax-saving opportunities, the new regime offers a lower tax rate and eliminates the paperwork and planning required under the old regime.
4. Speak with a Tax Expert
Given the complexities of tax planning and the changing tax laws, it’s always a good idea to consult with a tax professional who can assess your unique situation. They can help you choose the most advantageous tax regime based on your individual financial and tax-saving strategy.
Conclusion
A personalized tax-saving plan is an invaluable tool for anyone looking to reduce their tax burden while maximizing their eligible benefits. By scheduling a call with a tax expert, you’ll receive a detailed, customized strategy tailored to your unique financial situation. This proactive approach to tax planning not only saves you money but also ensures that you remain compliant with the latest tax laws. Whether you choose the old or new tax regime, the right strategy will help you keep more of your earnings. Don’t miss the opportunity to take charge of your tax savings with a professional and comprehensive plan. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1: How can I schedule a call to get a personalized tax-saving plan?
Scheduling a call with a tax expert to create a personalized tax-saving plan is simple. Platforms like TaxBuddy offer easy scheduling options where you can select a convenient time slot. You’ll be asked to provide your basic financial details, such as your income, existing investments, and other financial documents. This will help the expert tailor a plan specifically for your financial situation. After scheduling, the expert will reach out to discuss your goals and devise a plan to maximize your tax savings.
Q2: What documents are required for creating a tax-saving plan?
To create a personalized tax-saving plan, you’ll need to provide key financial documents. This includes your salary slips, Form 16, investment proof (like PPF, NPS, and insurance premiums), and any other documents related to tax-saving instruments. If you have home loans, proof of EMI payments is also necessary. These documents help tax experts assess your income and deductions, ensuring that your plan is tailored to your financial goals and compliant with tax regulations.
Q3: How do I know which tax regime is better for me?
A tax expert evaluates your total income, available deductions, exemptions, and tax-saving options to determine whether the old or new tax regime is more beneficial for you. The expert will provide an in-depth analysis of both options, highlighting the pros and cons. The old regime allows for more deductions, while the new regime offers lower tax rates but with no deductions. By reviewing your specific situation, the expert will guide you to the most tax-efficient choice.
Q4: Can I change my tax-saving plan after implementing it?
Yes, your tax-saving plan is flexible. Life events like a change in income, a new investment opportunity, or changes in tax laws can lead to adjustments in your plan. A tax expert can assist you in revising your plan as your financial situation evolves. The goal is to ensure that you continue optimizing your tax-saving opportunities throughout the year.
Q5: Will my tax-saving plan include advice on investments?
Absolutely! A key part of your tax-saving plan involves investment strategies that help reduce your taxable income. A tax expert will recommend tax-efficient investments like the National Pension Scheme (NPS), Public Provident Fund (PPF), and tax-saving fixed deposits. They may also suggest life insurance and health insurance plans as tax-saving tools under Section 80C and 80D, respectively. These recommendations align with your overall financial goals.
Q6: How often should I review my tax-saving plan?
It’s advisable to review your tax-saving plan at least once a year, especially before the end of the financial year. This helps ensure your plan is still aligned with your current financial goals, income, and tax laws. If there are any significant changes in your income, expenses, or tax laws during the year, reviewing the plan will ensure that you’re taking full advantage of available tax-saving opportunities.
Q7: What are the key benefits of a personalized tax-saving plan?
A personalized tax-saving plan maximizes your deductions, reduces your taxable income, and ensures compliance with tax regulations. By creating a tailored strategy, you avoid missing out on tax-saving opportunities and invest strategically in tax-efficient instruments. The plan also helps you balance your short-term and long-term financial goals, ensuring that you’re optimizing your tax savings while securing your financial future.
Q8: How can a tax expert help me with the implementation of my tax-saving plan?
A tax expert provides hands-on assistance in implementing your tax-saving plan. They guide you step-by-step on how to make investments, submit necessary forms, and ensure all tax-saving avenues are fully utilized. They also help you stay on top of deadlines and compliance requirements, making sure that your filing is accurate and optimized for the most tax savings possible.
Q9: Is it possible to file my taxes on my own after getting a tax-saving plan?
Yes, once you have a personalized tax-saving plan, you can file your taxes independently using self-filing tools. TaxBuddy offers easy-to-use tools for self-filing, making it convenient for you to submit your return. However, if you prefer more personalized guidance, TaxBuddy also offers expert-assisted filing, where a tax professional helps with the entire filing process, ensuring accuracy and compliance.
Q10: Can I change my tax-saving plan during the year if my financial situation changes?
Yes, your tax-saving plan is adaptable to changes in your financial situation. Whether it’s a new job, salary hike, investment change, or significant financial decisions like buying a house, your plan can be modified. A tax expert can provide ongoing advice and update your strategy to reflect any changes, ensuring you continue maximizing your tax savings.
Q11: Does a personalized tax-saving plan cover both tax regimes?
Yes, your tax-saving plan evaluates both the old and new tax regimes. Based on your income, deductions, and financial goals, the plan will analyze which regime provides the best tax-saving benefits. If you qualify for deductions, the old tax regime may be more beneficial. However, if you’re looking for a simpler process with lower tax rates, the new regime could be the right choice. Your expert will guide you in making the best decision.
Q12: How does a tax expert help with ongoing support after the tax-saving plan is implemented?
A tax expert offers continuous support by helping you track your progress and ensuring that you’re making the most of your tax-saving plan. They answer any questions you have, adjust the plan if your financial situation changes, and provide updates on new tax laws. Their goal is to make sure that your tax-saving strategy remains effective and aligned with your financial objectives throughout the year.
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