Income Tax Rule: New Tax Regulations Will Take Effect on April 1st -rag
Income Tax Rule: New Tax Regulations Will Take Effect on april 1st -rag!
All this is going to change from april 1. Major income tax changes coming into effect.. Do you know what?
Everyone needs to know about the new tax rules that will come into effect from april 1. All members of the public are advised to know and act on economic rules.
Income Tax Rule: New Tax Regulations Will Take Effect on april 1st-rag
April 1 marks the start of a new fiscal year. It is a very important day. Most of the budget proposals on Income Tax come into effect from this day. In addition, other changes will also apply from this day. Know about key income tax changes effective from april 1. A significant change was the default adoption of the new tax system. It aims to streamline the tax filing process and encourage greater participation in the new regime.
It has reduced tax rates with fewer exemptions and deductions. However, taxpayers will have the freedom to stick with the old tax system if it is more beneficial to them. From april 1, 2023, as announced in the last Budget, the basic exemption limit under the new tax regime has been raised from ₹ 2.5 lakh to ₹ 3 lakh, while the exemption under Section 87A of the Income Tax Act, 1961 has been increased. ₹ 5 lakh to ₹ 7 lahks. Hence, under the new regime, those with taxable income up to ₹ 7 lakh will get full tax relief. The new tax brackets will be taxed at 5% on income between ₹ 3 lakh and ₹ 6 lakh. Rs 6 lakh to ₹9 lakh will be taxed at 10%. Rs 9 lakh to ₹12 lakh will be taxed at 15%. Rs 12 lakh to ₹15 lakh will be taxed at 20%. 15 lakhs and above will be taxed at 30%.
The standard deduction of ₹ 50,000, which was used exclusively for the old tax system, has now been subsumed under the new tax system. This helps further reduce the taxable income under the new regime. The maximum surcharge rate from 37% on income above ₹ 5 crores has been reduced to 25%. This lowers the effective tax rate for high-income individuals who choose the new regime.
According to the Union Finance Minister's notification, life insurance policies issued on or after april 1, 2023, will be taxed if the maturity amount and total premium amount exceeds ₹ 5 lakh. The tax exemption limit for leave money for non-government employees was ₹ 3 lakh from 2022 and has now been increased to ₹ 25 lakh.
All this is going to change from april 1. Major income tax changes coming into effect.. Do you know what?
Everyone needs to know about the new tax rules that will come into effect from april 1. All members of the public are advised to know and act on economic rules.
Income Tax Rule: New Tax Regulations Will Take Effect on april 1st-rag
April 1 marks the start of a new fiscal year. It is a very important day. Most of the budget proposals on Income Tax come into effect from this day. In addition, other changes will also apply from this day. Know about key income tax changes effective from april 1. A significant change was the default adoption of the new tax system. It aims to streamline the tax filing process and encourage greater participation in the new regime.
It has reduced tax rates with fewer exemptions and deductions. However, taxpayers will have the freedom to stick with the old tax system if it is more beneficial to them. From april 1, 2023, as announced in the last Budget, the basic exemption limit under the new tax regime has been raised from ₹ 2.5 lakh to ₹ 3 lakh, while the exemption under Section 87A of the Income Tax Act, 1961 has been increased. ₹ 5 lakh to ₹ 7 lahks. Hence, under the new regime, those with taxable income up to ₹ 7 lakh will get full tax relief. The new tax brackets will be taxed at 5% on income between ₹ 3 lakh and ₹ 6 lakh. Rs 6 lakh to ₹9 lakh will be taxed at 10%. Rs 9 lakh to ₹12 lakh will be taxed at 15%. Rs 12 lakh to ₹15 lakh will be taxed at 20%. 15 lakhs and above will be taxed at 30%.
The standard deduction of ₹ 50,000, which was used exclusively for the old tax system, has now been subsumed under the new tax system. This helps further reduce the taxable income under the new regime. The maximum surcharge rate from 37% on income above ₹ 5 crores has been reduced to 25%. This lowers the effective tax rate for high-income individuals who choose the new regime.
According to the Union Finance Minister's notification, life insurance policies issued on or after april 1, 2023, will be taxed if the maturity amount and total premium amount exceeds ₹ 5 lakh. The tax exemption limit for leave money for non-government employees was ₹ 3 lakh from 2022 and has now been increased to ₹ 25 lakh.