In January, human resource departments across companies ask employees who have chosen the old tax regime to furnish proof of having made tax-saver investments during the year. Any failure to submit investment proofs leads to additional tax outgo in the last three months of the financial year.This move has become less significant over the years, as per data from Cleartax, an income tax advisory firm. Cleartax observes that 74.58% of individuals have adopted for the new tax regime (NTR), while only 24.92% continue with the old structure. However, fewer deductions do not eliminate the need for tax planning. “In the case of many taxpayers, the loss of mandatory tax-saving investments has reduced overall personal savings discipline, impacting long-term wealth accumulation.

Source: Economic Times January 12, 2026 01:28 UTC