Should you invest in PPF, NPS, and post office savings schemes after the new tax regime?

The new tax regime, which came into effect from the financial year 2023-24, has surprised taxpayers as it has eliminated several major tax exemptions such as the exemption given under sections 80C, 80D, and 80CCD(1). After this change, old tax saving schemes like PPF (Public Provident Fund), NSC (National Savings Certificate), Post Office Savings Schemes, and NPS (National Pension System) have become a topic of discussion among taxpayers.

New Delhi: The new tax regime, which came into effect from the financial year 2023-24, has surprised taxpayers as it has eliminated several major tax exemptions such as the exemption given under sections 80C, 80D, and 80CCD(1). After this change, old tax saving schemes like PPF (Public Provident Fund), NSC (National Savings Certificate), Post Office Savings Schemes, and NPS (National Pension System) have become a topic of discussion among taxpayers. Let us know whether these schemes are still relevant.

Let us tell you that while the benefits of tax exemptions have been reduced, experts believe that these investment schemes can still be a part of the investor's overall financial strategy. Many experts believe that the new tax regime has reduced the tax savings of traditional savings schemes like PPF and NSC. These schemes are still useful as low-risk investments for those investors who are looking for stable returns.

Experts say that by reviewing the portfolio, one can invest in high-return options like equity. Also, a diversified portfolio can also be considered.

PPF and NSC are still relevant

Some experts say that schemes like PPF and NSC still have their own importance. For example, PPF gives very good post-tax returns from a secured borrowing and can be helpful in retirement planning. These schemes can still be used depending on the investor's individual needs and financial goals.

Sandeep Agarwal, director, TeamLease Rigtech, says that the new tax system has given more flexibility to investors. Investors or taxpayers can invest according to their targets. According to him, "The new tax system now allows investors to focus on options that match their long-term wealth creation goals."

Some experts believe that if an investor wants to grow his assets even without tax benefits, he can choose the old tax system, where tax saving investments such as LSS, NPS and ULIP can be focused on. These schemes not only reduce tax liability, but can also help in asset creation.