New Income Tax Rules: In Budget 2023, the Central Government made changes in many rules related to income tax, which will have a direct impact on taxpayers in the year 2024. In her budget speech for the financial year 2023-24, Finance Minister Nirmala Sitharaman had tried to make the new tax regime more attractive by making an important announcement. Apart from this, the Income Tax Department has made many such changes, which are going to have a direct impact on the common people in 2024. Know about these tax changes.
Many changes made in the new tax regime-
The new tax regime was announced for the first time in Budget 2020. The government had made this default tax regime in March 2023. The Finance Minister had announced that if a taxpayer does not choose any tax regime on his own, then in such a situation TDS will be deducted as per the first tax regime. Only if you choose the old tax regime, your tax will be calculated according to that regime. Some changes were made in the new tax regime this year. After this, the basic exemption limit increased from Rs 2.5 lakh to Rs 3 lakh. The tax exemption limit has now increased from Rs 5 lakh to Rs 7 lakh. The standard tax exemption limit is Rs 50,000. In this case, you will get a total rebate of Rs 7.5 lakh in the new tax regime.
Rules changed for Debt Funds investors
This year, the Income Tax Department gave a big blow to Debt Fund investors and removed the tax exemption on Long Term Capital Gain (LTCG). In such a situation, the income earned through long term capital gain will now be included in the income and you will have to pay tax on it as per the tax slab. This new rule has come into effect from April 1, 2023.
Reduction in surcharge rate of high net individuals
Finance Minister Nirmala Sitharaman gave a big relief to the people earning more than Rs 5 crore annually and made a big cut in the surcharge rate this year. It has been reduced from 37 percent to 25 percent. In such a situation, the average tax on high net individuals has reduced from 42.74 percent to 39 percent.
Tax will be levied on life insurance amount
The Central Government has changed the rules of tax on the maturity amount of life insurance policy. Earlier this amount was completely tax free, but now taxpayers will have to pay tax on premium of more than Rs 5 lakh.
Capital gains on property sale-
The central government has fixed the limit of exemption on income earned through property sale at Rs 10 crore. In such a situation, tax payers can claim income up to Rs 10 crore on income from residential property under sections 54 and 54F of Income Tax.
Old IT returns can be deleted
The Income Tax Department provides the facility to taxpayers to delete unverified IT returns of old years. In such a situation, you can easily delete those IT returns of previous years whose verification has not been completed.
30 percent tax on online gaming
The central government has decided to impose 30 percent tax on earnings through online gaming this year. This rule has come into effect from March 31, 2023. Earlier, TDS was levied on annual income of more than Rs 10,000, which has now been increased to 30 per cent.
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