Most salaried people don't choose a tax regime, they assume one

A lot of salaried people don't actually choose a #TaxRegime.
They assume one based on what they hear!

Recently, a professional reached out, asking why the Income Tax portal shows tax due when his salary is less than 12 lakhs!
He said, "₹12 lakh tak toh tax hi nahi hai, in Net Tax Regime."!

What he missed out:
• capital gains
• trading income
• interest income
• other taxable components
that increased his overall tax liability!

The surprise comes much later, while filing tax returns, accompanied by penalties (read more about Advance Tax).

On the other hand, many people continue with the old regime almost by default.
Why? "Deductions claim karne hai. HRA, LIC, LTC, so many options!"
No calculations.
No comparison.
Just someone said so!

Taxes don't work on assumptions.
And #TaxSaving is not the same as #Wealth creation.

Buying random insurance policies, locking money into products you don't need, or making investments solely to save tax is not financial planning.

The right tax regime is not the one your colleague recommends.
It is not the one a #finfluencer promotes.
And it is definitely not the one that sounds better in a reel.

The right tax regime is simply the one that leaves more money in your pocket after doing the math.
Spending 15 minutes with a calculator can actually help you save more.

What's the most common tax misconception you keep hearing these days?