Taxes or tax season usually cause hype as well as stress for customers and businesses. Unfortunately, one of the most common concerns is whether or not the maximum deductions on actual tax have been made. Due to an ever-changing tax structure, particularly since the introduction of a new tax regime, many taxpayers are left unsure if they truly make deductions according to their taxation status. The current blog lists the key deductions under current rules, their importance considering the new regime, and leveraging GST retainership services and expert GST consultants to optimise one’s tax savings—the experts at Epsilon Accounts Anusthan Fintech.
Understanding Tax Deductions: Old vs. New Regime
Currently, the Indian tax system has two regimes: the old regime, which includes a lot of deductions and exemptions, and the new regime, which has mostly lower tax rates coupled with limited deductions and exemptions. Therefore, judicious selection of the proper regime is beneficial in reducing your tax burden.
Key Deductions Under the Old Regime
If you are opting for the old regime, then there are lots of deductions that may include:
- Section 80C: Investment in life insurance, provident fund, ELSS, principal repayment on home loans, etc., for a maximum of ₹1.5 lakh;
- Section 80D: Premium paid for health insurance of self and family, limited up to ₹25,000 (₹50,000 for senior citizens);
- Section 80E: Interests paid on education loans; there is no cap for the first 8 consecutive years.
- Section 80G: Donations made to specified charitable institutions; limits differ.
- House rent allowance (HRA): For salaried individuals who will live in rented accommodation, there will be a provision to ask for HRA;
- Standard deduction: For salaried individuals and pensioners, currently ₹50,000.
Deductions in the New Tax Regime
The new regime was introduced to simplify tax filings and induce people into spending a little more with the removal of almost all traditional deductions, besides giving a lower tax rate, but some deductions remain:
- Standard Deduction: Now applicable with an increase up to ₹75,000 in Budget 2025 for salaried taxpayers.
- Employer’s Contribution to NPS (Section 80CCD(2)): Still exempt under the new regime.
- Section 80TTB: Interest income, in respect of senior citizens, up to ₹50,000.
- Gratuity and Leave Encashment: Exemptions continue for eligible employees.
Indeed, the new mode makes things easy but doesn’t always work for the taxpayer’s efficiency in comparison with the old one, especially for taxpayers who have significant investments or have eligible expenses.
Commonly Missed Deductions
Most taxpayers and many who do their taxes themselves rather than going to a tax professional miss deductions like
- Preventive check-ups in health (comes under Section 80D)
- Interest on savings accounts (Sections 80TTA/80TTB)
- Education loan interest (Section 80E)
- Donations to relief funds and NGOs (Section 80G)
- Home loan interest for first-time buyers (Section 80EE/80EEA)
Missing the above deductions would result in savings wastage, plus potentially higher tax outgo.
How GST Retainership Services and GST Consultants Can Help
Taxation may not be limited to income tax, but GST-related compliance matters just as much for business or professional activities. Hence, the GST retainership services and qualified GST consultants:
- All-Embracing Compliance: The consultants make sure you claim all input tax credits rightfully, return at the right time, and avoid penalties.
- Integrated Tax Planning: By linking the GST to income tax planning, professionals help you to minimise overall tax exposure.
- Ongoing Advisory: Retainership services give clients continued assistance throughout the year, informing them of changes in regulations and new deduction opportunities.
- Error Reduction: With the aid of expert supervision, standard errors are avoided, such as missing deadlines and wrong filings, which would incur deductions or entail penalties.
Why Choose Epsilon Accounts Anusthan Fintech?
Epsilon Accounts Anusthan Fintech stands out for its holistic approach to tax and GST management. The highly qualified and experienced team of GST consultants and tax professionals offers:
- Customised advice on regime selection and deduction optimisation
- Complete GST retainership services to ensure compliance while maxing out credits
- Proactive alerts on changing tax laws and eligibility for any deductions
- Smooth coordination of GST and income tax filings for individuals and businesses
With Epsilon Accounts Anusthan Fintech, you can be assured that your tax filings are safe in the hands of professionals and receive peace of mind knowing that they are accurate, compliant, and optimised for savings.
Conclusion
Claiming all the tax deductions eligible requires understanding one’s current tax position while meticulously keeping records. An individual or a business would stand to benefit from the right tax advice. When one engages for expert GST retainership services and consults vastly experienced professionals such as those at Epsilon Accounts Anusthan Fintech LLP, there is no shred of doubt that one is missing out on many valuable deductions: maximised savings and reduced taxation stress.
FAQs
Q. How do GST retainership services help in maximising tax deductions?
It ensures accurate compliance with GST and optimises input tax credits while offering advisory support so that the entity can maximise overall tax savings.
Q. Can GST consultants assist individuals in choosing the proper tax regime?
Yes, according to GST consultants, they analyse your finances and direct you to the best tax regime and deductions for savings.
