New Tax Rules Implemented from 1st April: 12 rules related to income tax changing from 1st April, know how much you will benefit

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April 1, 2023 The new financial year 2023-24 is about to begin and with it many major changes are going to happen in the rules related to income tax. Taxpayers and the general public will get many benefits from this, while the benefits of investment due to some changed rules will not continue further.

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1- New income tax regime will be the default regime
Revised new tax regime will be implemented from April 1, which will be the default option for taxpayers. However, taxpayers will have the option to revert to the previous tax regime. In the new tax regime, you will get less benefits as compared to the old tax regime.

2- In ITR filing income limit
budget 2023, under the revised new tax regime, the basic exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. This means that citizens with an annual income of Rs 3 lakh will be able to voluntarily file income tax returns.

3- Tax exemption limit up to seven lakhs
The Ministry of Finance has increased the exemption in section 87A for taxable income up to Rs 7 lakhs under the Revised New Tax Regime. Those having a taxable income of less than Rs 7 lakh will not have to pay any tax if they opt for the revised new tax regime in the financial year 2023-24.

4- Standard deduction limit
Under the new tax regime applicable for taxpayers from April 1, a standard deduction of Rs 50,000 has been implemented for salaried and pensioners. This is going to be of great benefit to both the classes of people.

5- Changes in Income Tax Slab
According to the budget 2023, the income tax slabs under the new income tax system will now be as follows – (effective from April 1, 2023).

7- Leave encasement
According to income tax rules, the limit for giving leave encashment exemption for private sector employees was fixed at Rs 3 lakh from the year 2002, but under the new rules coming into effect from April 1, the leave encashment exemption limit has been increased to Rs 25 lakh.

8- LTCG benefit will not be available on debt mutual funds
According to income tax amendments, from April 1, 2023, no benefit of tax benefit will be available under indexation on the calculation of long term capital gain on debt mutual funds for investment. Investment in all types of debt mutual funds will be counted in the short term category. 9- Under the

life insurance policy income tax changes, income earned from life insurance premium in excess of Rs 5 lakh annual premium will be taxed from April 1, 2023.

10- Senior citizens will get benefits
From April 1, the maximum deposit limit for Senior Citizen Savings Scheme will increase from Rs 15 lakh to Rs 30 lakh. The highest deposit limit for monthly income scheme will increase from Rs 4.5 lakh to Rs 9 lakh for a single account. Whereas, the deposit limit for joint accounts will increase from Rs 7.5 lakh to Rs 15 lakh.

11- Tax will not be applicable on e-gold
From April 1, capital gain tax will not be applicable on e-gold. If investors convert physical gold into electronic gold receipt or vice-versa, they will not have to pay capital gains tax.

12- Market linked debentures
From April 1, 2023 investment in market linked debentures will be counted as short term capital asset. Prior to this the grandfathering of investments will end and the mutual fund industry will be negatively affected.

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