The new financial year has started and changes related to income tax rules have also come into effect for every taxpayer. From today, many changes are taking place in the rules of income tax. The new tax regime is in focus, while many types of tax benefits are also in discussion, which are being given somewhere and are being removed somewhere. We are going to tell you about all such income tax rules which will affect you from today.
1. The new tax regime is now the default tax regime
From today the new tax regime is now the default tax regime. Now the complete format on the ITR portal will be according to the new tax regime, if you want to file tax return in the old tax regime, then you will have to choose it separately. You will have the option to file tax in the old tax regime. There has been no change in the old tax regime with exemptions like investment and HRA. Taxpayers paying TDS will be deducted on the basis of tax slab of the new tax regime, in this case you have to choose the regime carefully and pay tax.
2. Tax slabs have changed in the new tax regime
In the new tax regime, the tax slab has been reduced from seven to six. Now income up to Rs 3 lakh is tax free. In the old tax regime, income up to Rs 2.5 lakh is tax-free. 5% on 3 lakh to 6 lakh, 10% on income 6 lakh to 9 lakh, 15% on income 9 lakh to 12 lakh, 20% on income 12 lakh to 15 lakh, above 15 lakh 30% tax will be applicable.
3. Rebate will be available under 87A in the new tax regime
The exemption limit has been increased under 87A in the new tax regime. Now those having income up to 7 lakh with exemption will not have to pay any tax. The maximum rebate limit is Rs 25,000. That is, those having income up to 7 lakhs will not have to pay tax even without claiming any exemption. Apart from this, the Finance Bill has been amended that individuals earning income slightly above the tax free income of Rs 7 lakh will have to pay tax only on the additional income.
4. Standard deduction will be available for the first time
For the first time, the benefit of standard deduction of Rs 50,000 has also been proposed under the new tax regime. Till now it was available only in the old tax regime. Those salaried employees and pensioners who opt for the new tax regime will also get a rebate of Rs 50,000.
5. Tax Surcharge
In Budget-2023, it has been announced to reduce the high surcharge as well. Now from today the tax surcharge of 37% has come down to 25%. Taxpayers coming above 5 crores annually will now pay 25% surcharge.
6. Exemption on leave encashment
Now the limit of leave encashment for non-government salaried professionals has been increased from 3 lakh to 25 lakh.
7. Taxation on Life Insurance
Income from such insurance policies issued after April 1, 2023, on which you pay a premium of more than 5 lakhs annually, will be taxable. That means you have to pay tax on it.
8. Taxation on Mutual Funds
Debt mutual funds whose exposure to equity is less than 35% will no longer get the benefit of long term capital gains tax. If you hold them for a period of more than 3 years, then you will have to pay small term capital gain tax on it. And it will be taxed according to your tax slab.
9. Taxation on house property
Till now taxpayers were entitled to tax incentives under section 54 and 54F for selling any house property or capital asset and investing the proceeds in a new house. But from today the limit of this incentive will be 10 crores. That is, on the amount above this, you will have to pay tax at the rate of 20% (indexation benefit).
11. Under 44AD and 44ADA
limit increased
Threshold under presumptive scheme 44AD for MSMEs has been increased from 2 crores to 3 crores. Whereas for professionals, under 44ADA, it has been increased from 50 lakhs to 75 lakhs. However, the cash receipt should not exceed 5%.
12. Taxation on Gold Conversion
If you convert physical gold into e-gold or e-gold into physical gold from April 1, then you will not have to pay any capital gains tax on it. Long term capital gains tax is applicable on gold. However, if you sell it after conversion, you will have to pay tax as per LTCG rules.
13. Taxation on Online Gaming
Online gaming has been brought under the purview of taxation. Now under the new section 115BBJ, the income earned from online gaming, be it cash, vouchers or whatever, will attract TDS at the rate of 30%.