10 major changes are going to happen regarding income tax, common man will be affected, new rules will be applicable from April 1
New Delhi. There is only one day left for the new financial year 2023-24 to begin. As soon as the financial year starts i.e. from April 1, many rules of income tax will change. As a taxpayer, it is very important for you to be aware of these changes. If you do not know about these changes yet, then we are going to tell you here which are the rules which are going to change. Let us tell you that from April 1, many major changes like new tax slabs to increase in tax limit and no LTCG tax benefits on debt mutual funds are taking place.
The announcements made by Union Finance Minister Nirmala Sitharaman in the annual budget on February 1 will come into effect as soon as the financial year 2023 begins. These changes are for income tax rules, which will have the biggest impact on income taxpayers. We are going to tell you about 10 such changes. Knowing these changes is very important for your tax planning.
1. Default tax regime: If a person does not indicate under which regime they will submit their return, then the new tax regime will be the default.
2. Tax exemption limit increased: Under the new tax regime, the government can get tax exemption on income up to Rs 7 lakh in Budget 2023. If you choose the option of paying tax through the old system, then this exemption will not be available.
3. Change in tax slab: Under the new tax regime, the tax slab is zero on 0 to 3 lakh, 5 percent on 3-6 lakh, 10 percent on 6 to 9 lakh, 15 percent on 9 to 12 lakh and 30 percent on above 15 lakh.
4. Standard Deduction: Under the old regime, a deduction of ₹ 50,000 is given, which has also been increased in the new regime.
5. Leave Encashment: From April 1, 2023, the leave encashment amount up to Rs 25 lakh will be tax free. Earlier this amount was Rs 3 lakh.
6. Electronic Gold Conversion Tax Free: From April 1, no capital gains tax will have to be paid on converting physical gold into electronic gold receipt (EGR), or converting EGR into physical gold.
7. Market Linked Debentures: Investment in Market Linked Debentures will be short term capital asset.
8. Life Insurance Policy: Income from life insurance premium in excess of Rs 5 lakh annual premium will come under tax.
9. Benefits for Senior Citizens: The maximum deposit limit under the Senior Citizen Savings Scheme has been increased from ₹15 lakh to ₹30 lakh.
10. Taxes on Debt Mutual Funds: From April 1, LTCG tax benefits will not be given on debt mutual funds.
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Tags: income tax, income tax exemption, income tax notice, income tax return, income tax slabs
FIRST PUBLISHED : March 30, 2023