Along with the new income tax slab rates, the budget may rationalize tax deductions and allowances. Specific allowances may be reduced, and the government may increase the standard deduction from salary to Rs 60,000 from Rs. 50,000 currently. The proposed tax cuts may also turn out to be just speculations as the government has limited fiscal scope for tax reliefs. With a shortfall in tax revenues, the government may choose to leave income tax slabs unchanged. Whatever be the outcome, the middle class will anxiously wait for the finance minister to announce the Union Budget 2020 on February 1.
In the meantime, if you’re looking for ways to save on tax, look no further. You can effectively decrease your tax burden by investing in a host of tax-saving instruments. ULIPs is one of them. ULIPs (Unit Linked Insurance Plans) come with the privileged triple exempt status (EEE). Everything from the principal investment amount to income earned and the maturity proceeds are tax-free. You can invest in ULIPs and take your pick from 3 different plans fine-tuned to your needs and goals: Retirement Plans, Child Plans, and Investment Plans. Take advantage of Bajaj Allianz ULIPs’ three-pronged benefits of tax-saving, financial protection and high returns by investing now through Bajaj Markets!