New Rules From April 2023: From April 1, 2023, 17 major financial changes are going to happen, which will directly affect your pocket.
New Financial Rules Changed: The new financial year is starting from April. In such a situation, many changes are going to happen from today, which will directly affect your monthly budget. From April 1, 17 major changes are going to happen from income tax to LPG price. Let us know what will change from today.
New Tax Slab
The tax slab was revised in Budget 2023. This change has been made under the new tax regime. Now no tax up to 3 lakhs, 5% on income of 3 to 5 lakhs, 10% on 6 to 9 lakhs, 15% on 9 to 12 lakhs, 20% between 12 to 15 lakhs and 30% on more than 15 lakhs Will have to pay tax. This tax slab will be effective from today.
No tax on 7 lakh
If your income is seven lakh rupees or less, then you will not have to pay any tax under the new tax regime. Earlier this limit was Rs 5 lakh, which was increased by the government in the budget 2023.
Basic exemption limit increased in new tax regime
It has been increased by 50 thousand and now it has been increased to 3 lakh. Earlier this limit was Rs 2.5 lakh.
Standard deduction benefits under the new tax regime
Standard deduction will be available under this tax regime and it will be up to Rs 50,000, which will benefit individual employees and pensioners.
Default option of new tax regime
Budget 2023 has made the new tax regime as the default option. This means that if you do not opt for the old tax regime, then income tax on your income will be calculated under the new tax regime.
Lower surcharge under the new tax regime
The government has reduced the surcharge under the new tax regime. As per the new law, for a person with taxable income above Rs 5 crore and opting for the new tax regime, the surcharge will be applicable at 25 per cent instead of 37 per cent.
No tax benefit on debt mutual funds
Under Budget 2023, indexation benefits available on debt mutual funds have been removed. From April 1, investments in debt mutual funds will come under short term capital gains tax.
Marginal tax relief for small tax payers
Under the new tax regime, the government has given the benefit of minor relief to small taxpayers. As per the Income Tax Act, a person opting for the new tax regime in the financial year 2023-24 will be eligible for minor relief, provided the taxable income exceeds Rs 7 lakh.
TDS on online gaming
With effect from April 1, the government has removed the earlier available limit for tax deduction from online game winnings. Till March 31, 2023, TDS was applicable on winnings from online games if the winnings exceeded Rs 10,000. However, from April 1, 2023, every rupee earned from playing online games will come under TDS. There will be a reduction of 30 percent on this.
Tax on life insurance policy
If you pay a premium charge of Rs 5 lakh annually for life insurance, then you will have to pay tax.
Capital gain on sale of property worth Rs 10 crore
The maximum deduction that can be claimed by the government from capital gains arising from the sale of residential property under section 54 and section 54F.
Tax exemption limit
The government has increased the tax exemption limit on leave encashment for non-government employees. Earlier the maximum amount of tax exemption was Rs 3 lakh which was fixed in 2002 and now it has been increased to Rs 25 lakh.
TDS deduction on EPF withdrawal reduced
In some cases TDS on EPF withdrawal has been reduced from 30% to 20%. As announced in Budget 2023, the tax on EPF withdrawal where PAN is not available has been reduced to 20 per cent.
Mahila Samman Savings Scheme
Women can invest in Samman Bachat Patra Yojana from today itself. Under this, you will be given an interest of 7.5 percent and you can invest for 2 years.
Post office schemes limit increased
From today, the limit of Senior Citizen Saving Scheme and Monthly Income Scheme of the Post Office has been increased and now citizens can invest more money for regular income.
NPS withdrawal
If you are going to withdraw money from NPS, then it will be mandatory to provide KYC documents. Without updating these documents, you will not be able to withdraw money.
