The Indian tax system underwent a major overhaul with the introduction of the new tax regime. The new tax regime offers lower tax rates but limits the number of deductions and exemptions available to taxpayers. While the old tax regime continues to exist, taxpayers have the option to choose between the two regimes. We will discuss the differences between the old tax regime and the new tax regime, and which one is better based on your income level and tax-saving investments.

Old Tax Regime

The old tax regime is the traditional tax system that has been in place for many years. Under the old tax regime, taxpayers are allowed to claim various deductions and exemptions to reduce their taxable income. Some of the popular deductions and exemptions under the old tax regime include:

• Standard Deduction: A standard deduction of Rs. 50,000 is allowed for salaried individuals.
• People whose gross salary income is up to INR 5.5 lakh would have no tax liability.
• Rebate u/s 87A was ₹12,500
• Deduction under Section 80C: This deduction allows taxpayers to claim up to Rs. 1.5 lakh for investments in specified instruments such as Public Provident Fund (PPF), National Pension System (NPS), and Equity-Linked Savings Scheme (ELSS).
• Deduction under Section 80D: This deduction allows taxpayers to claim a deduction of up to Rs. 25,000 for medical insurance premiums paid for themselves, spouse, and dependent children. An additional deduction of up to Rs. 50,000 is allowed for senior citizens.
• Deduction under Section 80E: This deduction allows taxpayers to claim a deduction for the interest paid on education loans.
• Deduction under Section 80TTA: This deduction allows taxpayers to claim a deduction of up to Rs. 10,000 for interest earned on savings accounts.
• Deduction under Section 80G: This deduction allows taxpayers to claim a deduction for donations made to specified charitable institutions.

New Tax Regime

The new tax regime was introduced in the 2023 Union Budget with the aim of simplifying the tax system and offering lower tax rates to taxpayers. Under the new tax regime, taxpayers are not allowed to claim most deductions and exemptions available under the old tax regime. However, the tax rates under the new tax regime are lower than the old tax regime. The tax rates under the new tax regime are as follows:

• The income tax rebate limit has been increased from INR 5 lakh to INR 7 lakh per annum for resident individuals.
• The Standard deduction of INR 50,000 has also been included in the new tax regime as well.
• People whose gross salary income is up to INR 7.5 lakh would have no tax liability.
• Rebate u/s 87A would be ₹25,000
• Taxpayers who choose the new tax regime will not be allowed to claim deductions such as, deductions under Section 80C, deductions under Section 80D, deductions under Section 80E, deductions under Section 80TTA, and deductions under Section 80G.
• However, they will be allowed to claim deductions for contributions made to the National Pension System (NPS) and the Atal Pension Yojana (APY).

Which Tax Regime is Better?

Annual Income Income tax old slab regime Income Tax new slab regime (AY 23-24) Upto Rs.2.5 lakhNilNil2.5 lakh-5 lakh5%5%Rs.5 lakh-7.5 lakh20%10%Rs.7.5 lakh-10 lakh 20% 15% Rs.10 lakh-12.5 lakh 30% 20% Rs.12.5 lakh -15 lakh 30% 25% Rs.15 lakh & above 30% 30%

Income RangeRates as per New Tax Regime(AY 2024-25 onwards)Up to INR 3,00,000NilINR 3,00,001 – 6,00,0005%INR 6,00,001 – 9,00,00010%INR 9,00,001 – 12,00,00015%INR 12,00,001 – 15,00,00020%Above INR 15,00,00030%

The choice between the old tax regime and the new tax regime will depend on various factors such as income level, tax-saving investments, and deductions and exemptions available to taxpayers.

For taxpayers with a lower income level and without any tax-saving investments, the new tax regime would be more beneficial as it offers lower tax rates.

The old tax regime is the one that has been in place for many years and is the default option for most taxpayers. Under this regime, taxpayers can claim a variety of deductions and exemptions to reduce their taxable income. Some of the most popular deductions include those for investments in instruments such as Public Provident Fund (PPF), Equity Linked Saving Scheme (ELSS), and National Pension System (NPS). Taxpayers can also claim deductions for expenses such as home loan interest, medical expenses, and donations to charitable organizations.

The new tax regime was introduced in the Budget Under this regime, taxpayers cannot claim deductions for investments or expenses, but the tax rates are lower than those in the old regime. For example, under the new regime, taxpayers with income up to Rs. 15 lakh are subject to a tax rate of 25%, whereas under the old regime, they would be subject to a tax rate of 30%.

So, which regime is better? It depends on your individual financial situation. If you have a lot of investments and expenses that qualify for deductions and exemptions, the old regime may be better for you as it can help you reduce your taxable income and, therefore, your tax liability. On the other hand, if you don't have many investments or expenses that qualify for deductions, the new regime may be a better option as it offers lower tax rates.

It's important to note that once you choose a tax regime for a financial year, you cannot switch to the other regime until the following financial year. So, make sure to carefully evaluate your options before making a decision.

In conclusion, both the old and new tax regimes have their own advantages and disadvantages, and which one is better for you depends on your individual financial situation. If you're not sure which regime to choose, it may be a good idea to consult a tax professional who can help you make an informed decision.

वैश्विक अनिश्चिताओं के बीच बैंकिंग संकट पर सरकार के हस्तक्षेप और प्रमुख बैंको के सपोर्ट मिलने से बड़े ऋण संकट की सम्भवना को कम किया है जिससे पिछले सप्ताह सोने की कीमतों में मुनाफा वसूली हावी रही। हालांकि, कॉमेक्स वायदा बाजार में सोना 2000 डॉलर प्रति औंस के करीब बना हुआ है और चांदी के भाव 24 डॉलर के स्तरों पर स्थिर बने हुए है। पिछले सप्ताह अमेरिका से जारी बेरोज़गारी के दावों में बढ़त दर्ज की गई है और टेक्नोलॉजी कंपनी से छटनी की खबरों से, मुद्रास्फीति कम होने की अटकले बढ़ी है। अर्थव्यवस्था पर दबाव रहने के चलते निवेशकों को इस बात की उम्मीद है की फेड अब ब्याज दर बढ़ोतरी पर नरमी बरतेगा जिससे  सुरक्षित आश्रय की मांग में मजबूती देखने को मिल रही है। बैंकिंग संकट पर नियंत्रण की खबरों के बीच, एमसीएक्स में जून वायदा सोने की कीमते पिछले सप्ताह फ्लैट रह कर 60000 रुपये प्रति दस ग्राम पर रही। जबकि चीन में पर्चेसिंग मैनेजर इंडेक्स 56.4 के स्तरों पर पहुंचने से सप्ताह में चांदी की कीमतों में 2 प्रतिशत की बढ़ोतरी दर्ज की गई है और भाव 72000 रुपये प्रति किलो पर रहे। कोवीड नीति से उभरने के बाद, चीन की अर्थव्यवस्था में लगातार बढ़त देखने को मिल रही है जिससे सोने की डिमांड वहा लगातार बढ़ रही है। शंघाई गोल्ड एक्सचेंज से सोने की निकासी में साल-दर-साल 76 टन की बढ़ोतरी हुई है, जो 2014 से अब तक सर्वाधिक है। एक्सचेंज से सोने की निकासी में बढ़ोतरी, थोक बाज़ार की मजबूत मांग की और संकेत कर रहे है। 2018 के बाद से चीन में सोने का आयात 2022 में सर्वाधिक रहा है। पीपुल्स बैंक ऑफ चाइना ने नवंबर में सोने की आधिकारिक खरीदारी शुरू की और यह फरवरी में भी जारी रही। शंघाई और लंदन में सोने की प्रीमियम में बढ़ोतरी देखने को मिल रही है, जो कीमतों में मजबूती के संकेत दे रहे है।

तकनिकी विश्लेषण

इस सप्ताह कीमती धातुओं में तेज़ी रहने की सम्भावना है। सोने में सपोर्ट 59000 रुपये पर है और रेजिस्टेंस 61000 रुपये पर है। चांदी में सपोर्ट 69500 रुपये पर है और रेजिस्टेंस 73500 रुपये पर है।

अमेरिकी मुद्रास्फीति कम होने के संकेतों के बाद सोने की कीमतों में लगातार चौथे सत्र में तेजी दर्ज की गई है, जबकि 2023 की मंदी की लगातार आशंका ने भी कीमती धातुओं की सुरक्षित आश्रय मांग को सपोर्ट किया है। हालांकि, वैश्विक अर्थव्यवस्था की धीमी गति का असर चीन के आकड़ो में दिखाई दिया है जिससे बाजार में डिमांड की चिंताए बढ़ने लगी है। पिछले सप्ताह चीन से जारी मुद्रास्फीति के आंकड़े अनुमान से कम रहे जिससे चीन की अर्थव्यवस्था को नए आर्थिक पैकेज मिलने की उम्मीद बढ़ गई है, और कीमती धातुओं के भाव को सपोर्ट मिल रहा है। अमेरिका से जारी मुद्रास्फीति के आंकड़े मार्च में साल -दर -साल 1 प्रतिशत घट कर 5 प्रतिशत  रह गए है। पीपीआई और बेरोज़गारी के दावे के आंकड़े भी उम्मीद से कमजोर दर्ज किये गए है, जिससे आर्थिक मंदी की सम्भावना को बढ़ावा मिल रहा है और कीमती धातुओं के भाव में तेज़ी बनी हुई है। एफओएमसी मीटिंग के मिनट्स में बैंकिंग संकट के चलते इस साल के अंत तक आर्थिक मंदी आने और उससे अगले दो साल तक उसका प्रभाव रहने की सम्भावना व्यक्त की है। हांलाकि, फेड ऑफिशल्स अभी भी 0.25 प्रतिशत ब्याज दर वृद्धि के पक्ष में है क्योकि मुद्रास्फीति अभी भी उच्च स्तरों पर चल रही है। अमेरिका और यूरोप में आर्थिक मंदी के अनुमान और फेड का मौद्रिक नीति पर नरम रुख से डॉलर इंडेक्स और अमेरिकी बेंचमार्क ट्रेज़री यील्ड में गिरावट जारी है जिससे सोने की कीमतों को फायदा मिल रहा है।

तकनिकी विश्लेषण

इस सप्ताह कीमती धातुओं में तेज़ी रहने की सम्भावना है। सोने में सपोर्ट 60000 रुपये पर है और रेजिस्टेंस 61800 रुपये पर है। चांदी में सपोर्ट 74000 रुपये पर है और रेजिस्टेंस 78000 रुपये पर है।

The Production Linked Incentive (PLI) scheme is a government initiative aimed at increasing domestic manufacturing across various sectors of the economy. The scheme offers incentives to manufacturers who produce goods in India and meet specific criteria, including quality, innovation, and productivity. The PLI scheme is expected to boost the overall economy by promoting domestic manufacturing and reducing the country's dependence on imports. This blog will discuss the PLI scheme, its impact on the economy, and its gaps.

What is the PLI Scheme?

The PLI scheme was launched in March 2020 to encourage domestic manufacturing and increase India's share in global markets. The scheme offers financial incentives to eligible manufacturers who meet specific production targets. The incentives are linked to the incremental sales of goods manufactured in India, and they vary based on the sector and product category.

The PLI scheme covers various sectors, including electronics, pharmaceuticals, automobiles, textiles, food processing, etc. The government has allocated a budget of Rs. 1.97 lakh crore for the scheme over a period of five years, starting from 2020-21. The scheme aims to create employment opportunities and increase the country's manufacturing capacity.

Impact of PLI on the Overall Economy:

The PLI scheme is expected to have a significant impact on the overall economy. It will promote domestic manufacturing and reduce India's dependence on imports. The scheme will also create employment opportunities and increase the country's manufacturing capacity, which will help in achieving the goal of making India self-reliant.

The scheme is expected to attract foreign investments and improve the country's trade balance. The PLI scheme will also help in developing a robust ecosystem for manufacturing in India. The scheme will encourage innovation, improve quality standards, and increase productivity.

The PLI scheme is expected to have a positive impact on various sectors of the economy. In the electronics sector, the scheme is expected to attract investments worth Rs. 11,000 crores and create employment opportunities for around 2.5 lakh people. In the pharmaceutical sector, the scheme is expected to attract investments worth Rs. 15,000 crores and create employment opportunities for around 20,000 people.

Gaps in the PLI Scheme:

Although the PLI scheme is expected to have a positive impact on the economy, it has certain gaps that need to be addressed. One of the major gaps in the scheme is its focus on large manufacturers. Small and medium-sized enterprises (SMEs) are left out of the scheme, and they are the ones who need support the most.

Another gap in the PLI scheme is the lack of clarity regarding the eligibility criteria for incentives. The criteria are not clearly defined, which creates confusion among manufacturers. This lack of clarity may discourage manufacturers from participating in the scheme.

There is also a lack of transparency in allocating incentives under the scheme. The criteria for allocation are not transparent, which may create opportunities for favoritism and corruption.

Conclusion:

The PLI scheme is a government initiative aimed at promoting domestic manufacturing and reducing India's dependence on imports. The scheme offers financial incentives to eligible manufacturers who meet specific production targets. The PLI scheme is expected to have a significant impact on the overall economy by creating employment opportunities, attracting foreign investments, and improving the country's trade balance. However, there are gaps in the scheme that need to be addressed, such as its focus on large manufacturers, lack of clarity regarding eligibility criteria, and lack of transparency in the allocation of incentives. If these gaps are addressed, the PLI scheme has the potential to contribute significantly to the country's economic growth and development.

National Pension System (NPS)

The National Pension System (NPS) is a government-sponsored retirement savings scheme in India. It was introduced in 2004 and has become increasingly popular among investors looking for a low-cost, long-term savings option for their retirement. In this blog post, we will discuss the basics of NPS, its features, tax benefits, and rules, as well as the advantages and disadvantages of investing in it.

Basics of NPS

The National Pension System is a voluntary, defined-contribution retirement savings scheme that allows subscribers to accumulate savings for their retirement. Under this scheme, subscribers can contribute to their NPS account regularly, and the funds are invested in a mix of equity, debt, and government securities, based on their investment preferences. Upon retirement, subscribers can withdraw a portion of their savings as a lump sum, and the remaining amount is paid out as a monthly pension.

NPS Login

To open an NPS account, subscribers can visit the website of the National Pension System and register themselves by providing their personal and bank details. They can also choose a fund manager and select their investment preferences. Subscribers are given a Permanent Retirement Account Number (PRAN) which is used to manage their account and make contributions. Subscribers can also log in to their NPS account to check their balance, view their transactions, and make contributions.

Features of NPS

The National Pension System offers several features that make it an attractive retirement savings option. Some of the key features include:

• Low Cost: The NPS is a low-cost retirement savings option, with an annual maintenance charge of 0.25% of the account balance, which is significantly lower than other retirement savings options.
• Flexibility: Subscribers have the flexibility to choose their fund manager, investment preferences, and contribution amounts, making it easy for them to tailor their investments to their individual needs.
• Tax Benefits: Subscribers can avail of tax benefits under the NPS, with contributions of up to Rs. 1.5 lakhs per year eligible for tax deductions under Section 80C of the Income Tax Act, and an additional deduction of up to Rs. 50,000 available under Section 80CCD(1B) for the accounting year 2023-24.
• Portability: Subscribers can easily transfer their NPS account from one fund manager to another or from one sector to another, making it easy for them to manage their investments as their needs change.

Rules of NPS

The NPS also has certain rules and regulations that subscribers must follow. For instance, subscribers must contribute regularly to their NPS account, and failure to do so may result in penalties. Additionally, subscribers must keep their contact details and bank account information up to date to ensure that they receive their pension payments in a timely manner.

Advantages of NPS

• Long-term savings: One of the biggest advantages of the National Pension System is that it encourages long-term savings for retirement. This is important because retirement planning requires a long-term perspective and disciplined approach. The NPS, with its tax benefits, low cost, and flexibility, offers an attractive option for investors looking to build a retirement corpus.
• Tax benefits: The NPS offers tax benefits to subscribers, with contributions of up to Rs. 1.5 lakhs per year eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, an additional deduction of up to Rs. 50,000 is available under Section 80CCD(1B). This makes the NPS an attractive option for investors looking to save tax while building a retirement corpus.
• Low cost: The NPS is a low-cost retirement savings option, with an annual maintenance charge of 0.25% of the account balance, which is significantly lower than other retirement savings options. This means that more of the investor's money is invested in the underlying assets, which can help to maximize returns over the long term.
• Flexibility: The NPS offers subscribers the flexibility to choose their fund manager, investment preferences, and contribution amounts, making it easy for them to tailor their investments to their individual needs. This flexibility can help investors to build a retirement corpus that meets their unique requirements.
• Portability: Subscribers can easily transfer their NPS account from one fund manager to another or from one sector to another, making it easy for them to manage their investments as their needs change. This means that investors can make changes to their investments without having to worry about any penalties or fees.

Disadvantages of NPS

• Compulsory Annuity: One of the biggest disadvantages of the National Pension System is that subscribers are required to use at least 40% of the accumulated corpus to purchase an annuity upon retirement. This means that subscribers may not have as much control over their retirement income as they would like.
• Taxation of Withdrawals: While contributions to the NPS are eligible for tax benefits, withdrawals from the NPS are taxable. This means that subscribers may have to pay taxes on the amount they withdraw from their NPS account upon retirement. This can reduce the overall returns that investors receive from their NPS investments.
• Market Risk: The NPS invests in a mix of equity, debt, and government securities, which means that it is subject to market risk. This means that the returns on the NPS investments can vary depending on market conditions, which may not be suitable for investors who are risk-averse.
• Limited Liquidity: The NPS is a long-term investment option, and subscribers are not allowed to withdraw their funds before the age of 60, except in case of certain emergencies. This means that the NPS may not be suitable for investors who require liquidity for short-term goals.

Conclusion

The National Pension System is a popular retirement savings option in India, offering investors a low-cost, flexible, and tax-efficient way to build a retirement corpus. While there are certain disadvantages associated with the NPS, such as compulsory annuity and market risk, the advantages of the scheme outweigh the disadvantages, making it a good option for investors looking to build a retirement corpus over the long term. As always, investors should carefully consider their investment goals and risk tolerance before investing in any financial instrument, including the National Pension System.

लगभग दो वर्षों में पहली बार फरवरी में अमेरिकी नौकरियां दस मिलियन से नीचे गई है, यह एक संकेत है कि फेडरल रिजर्व के श्रम बाजार को धीमा करने के प्रयासों का प्रभाव दिखाई देने लगा है। अमेरिकी लेबर डिपार्टमेंट की जोल्ट्स रिपोर्ट में जॉब ओपनिंग घट कर 9.93 मिलियन रह गई जिससे एमसीएक्स जून वायदा सोने के भाव में 2000 रुपये प्रति दस ग्राम और चांदी के भाव में 3000 रुपये प्रति किलो की साप्ताहिक तेज़ी दिखी। फेड द्वारा मई 2022 से शुरू की गई ब्याज दर वृद्धि को अब रोकने के संकेत दिए है क्योकि अमेरिका में मुद्रास्फीति 41 साल के उच्च स्तरों तक पहुंच चुकी थी और इस पर नियंत्रण करने के लिए श्रम बाजार पर फेड का मुख्य टारगेट था। फेड पिछले एक साल में नौ बार ब्याज दरों में बढ़ोतरी कर चुका है जिसका का की कोई खास असर श्रम बाजार में अब तक देखने को नहीं मिला था। हालांकि, ब्याज दर बढ़ोतरी के कारण अमेरिका और यूरोप में आर्थिक मंदी आने की सम्भवना बढ़ गई है जिसका असर अमेरिका के आर्थिक आकड़ो में दिखाई देने लगा है। रिज़र्व बैंक ऑफ़ इंडिया द्वारा अप्रैल की मॉनेटरी पॉलिसी में ब्याज दरों में कोई बदलाव नहीं किया। श्रम बाजार पर बड़ रहे दबाव के चलते यह सम्भावना बढ़ने लगी है की फेड भी आगे ब्याज दरों में बढ़ोतरी नहीं करेगा जिससे कीमती धातुओं में तेज़ी बनी हुई है। अर्थव्यवस्था की विकास गति धीमी होने के कारण कॉमेक्स में सोने के भाव 2036 डॉलर प्रति औंस पर कारोबार कर रहे है, जो 2020 के उच्चतम स्तरों के करीब के भाव है। इस सप्ताह आईएमएफ की बैठक , अमेरिकी सीपीआई, एफओएमसी मीटिंग मिनट्स, रिटेल सेल्स और कंस्यूमर सेंटीमेंट के आंकड़े कीमती धातुओं की चाल पर असर करेंगे।

तकनिकी विश्लेषण:

इस सप्ताह कीमती धातुओं में तेज़ी जारी रहने की सम्भावना है। सोने में सपोर्ट 60000 रुपये पर है और रेजिस्टेंस 61200 रुपये पर है। चांदी में सपोर्ट 72000 रुपये पर है और रेजिस्टेंस 76000 रुपये पर है।