Income Tax Changes from 1st April 2023: With April, the new financial year begins in India. With this, many rules from tax to savings change. Let us see here that after 3 days i.e. from April 1, which rules related to income tax are going to change.
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The new financial year 2023-24 is starting from 1st April. From this day, the proposals of the general budget presented in February will be implemented across the country, that is, there will be some change in the rules from your savings to income tax. Today we are telling you which rules related to income tax are going to change from 1st April. Check full list…
The biggest change in the income tax system from the new financial year is going to be that from now on the new tax system for the people. (New Tax Regime) There will be a default tax regime. This means that now when you go to file returns on the Income Tax Portal, you will get the new tax regime already selected. If you want to change it, then you have to choose the old tax regime option.
Income tax free up to 7 lakhs
Finance Minister Nirmala Sitharaman’s biggest announcement in this year’s general budget was to make income up to Rs 7 lakh tax-free. However, under the new system of income tax, income tax of Rs 7 lakh has been made free. At the same time, the benefit of standard deduction of Rs 50,000 has also been started. In this way, income up to Rs 7.5 lakh will be tax free in the new tax regime.
See also: Forget 7 lakh, entire income of Rs 7,76,000 will be tax-free, this is the calculation
change in income tax slab
Along with tax exemption, tax slabs have also been changed in the new system of income tax. Accordingly…
- Income from 0 to 3 lakh rupees ‘zero tax’
- Income between Rs 3 to 6 lakhs ‘5% tax’
- Income between 6 to 9 lakh rupees ‘10% tax’
- Income between 9 to 12 lakh rupees ‘15% tax’
- Income from Rs 12 to 15 lakh ‘20% tax’
- Income above Rs 15 lakh ‘30% tax’
Also Read: Investing In Mutual Funds? Don’t panic, even after changing the tax law, you can take advantage like this
Tax benefits on debt mutual funds end
If you invest in debt mutual funds, then the long term capital gains tax benefit and indexation benefits available on it have now been abolished. Now tax will be calculated on it just like FD. On the other hand, the profit from debt mutual fund will be taxed like short term capital gain. Click here to understand in more detail…
Tax on life insurance premium
Another major change in this year’s budget was regarding the premium of life insurance policy. If a person is paying a premium of more than Rs 5 lakh on an annual basis for a life insurance policy, then it will come under the tax net. However, this rule of income tax will not apply to ULIP plans.
Read this also: Even if there is a salary of 10 lakhs, there will be no tax of one rupee, this is the Zero Tax formula
Good benefits for senior citizens
The government has given some good relief in income tax to senior citizens from the new financial year. From now on, the maximum deposit limit in the Senior Citizens Savings Scheme has been increased from Rs 15 lakh to Rs 30 lakh.
At the same time, in the Monthly Income Scheme, the deposit limit has been increased from Rs 4.5 lakh to Rs 9 lakh in a single holding account. And in the joint account, it has been increased from Rs 7.5 lakh to Rs 15 lakh.
10 lakhs will remain income tax free in the old system
To popularize the new tax regime, the government may have made income up to Rs 7 lakh tax free. But there is no benefit on any kind of savings in this arrangement. In such a situation, income up to Rs 10 lakh can still be kept tax-free by taking advantage of different benefits of the old tax system. For more details click here…
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