Search results
- Starting 1 st April 2023, the new income tax regime will become the default tax regime. However, taxpayers will still have the option to go for the old regime, but to do so, you will have to file your ITR on or before the due date. If you are a salaried taxpayer, TDS will be deducted based on tax rates under the New Tax Regime.
taxguru.in/income-tax/income-tax-amendments-applicable-fy-2023-24.html
People also ask
How will income tax changes affect taxpayers in FY 2023-24?
Which changes in income tax will be effective from 1st April 2023?
What is the new tax regime for FY 2023–24?
What are the income tax rule changes from April 1 2024?
Aug 6, 2024 · The income tax rule changes from April 1, 2024 make sure taxpayers can get rid of complex tax planning as these changes aim to simplify tax planning. With the introduction of the new income tax regime, the basic exemption limit has been elevated from Rs.2.5 lakhs to Rs.3 lakhs.
- New Income Tax Regime to be the default regime. Starting 1 April 2023, the new income tax regime will act as the default tax regime. However, taxpayers will still have the option to choose the old regime.
- Changes in Income Tax Slabs in New Tax Regime. Slab. Tax Rates. Upto 3,00,000. Nil. 3,00,001- 6,00,000 5% 6,00,001-9,00,000. 10% 9,00,001-12,00,000. 15% 12,00,001-15,00,000.
- Rebate u/s 87A under New Tax Regime. Rebate u/s 87A is increased under New Tax Regime. The taxpayers having income upto Rs 7 lakhs are not required to pay any taxes.
- Standard Deduction. The standard deduction of Rs 50,000 under the old regime shall also be extended to the new regime. Under the new regime effective from April 2023, the benefit of Rs50,000 standard deduction will be allowed for salaried employees and for pensioners opting for new tax regime.
- New Tax Regime to Be The Default Regime
- Reduced Surcharge For HNIs Under New Tax Regime
- Standard Deduction Benefit Extended to The New Tax Regime
- Tax Rebate Limit Raised from Rs. 5 Lakhs to Rs. 7 Lakhs Under New Tax Regime
- Marginal Tax Relief Introduced For Small Taxpayers Under New Tax Regime
- LTA Encashment Limit Raised from Rs. 3 Lakhs to Rs. 25 Lakhs
- Reduced TDS on EPF Withdrawal
- Limit Hiked Under The Presumptive Scheme
- Ease in Claiming Deduction on Amortization of Preliminary Expenses
- No More LTCG Tax Benefit on Debt Mutual Funds
Starting 1st April 2023, the new income tax regime will become the default tax regime. However, taxpayers will still have the option to go for the old regime, but to do so, you will have to file your ITR on or before the due date. If you are a salaried taxpayer, TDS will be deducted based on tax rates under the New Tax Regime.
Under the New Tax Regime, the highest surcharge of 37% will be lowered to 25% for those earning more than Rs. 5 crores. This also brings down the highest effective tax rate from 42.74% to 39%.
The standard deduction of Rs. 50,000 on salary income was earlier not allowed in the New Tax Regime until FY 2022-23 (AY 2023-24). However, from FY 2023-24 (AY 2024-25) this benefit of a standard deduction will now be allowedfor salaried employees and pensioners opting under the New Tax Regime as well.
The government has increased the tax rebate limit u/s 87A from Rs. 5 lakhs to Rs. 7 lakhsunder the New Tax Regime. In short, any person whose income under the New Tax Regime is less than or equal to Rs. 7 lakhs, need not invest anything to claim any sort of exemption as the entire income would be tax-free irrespective of the quantum of investment m...
As mentioned above at point no. 5 that the government has increased the tax rebate limit to Rs. 7 lakhs. Thus, they end up paying zero tax on their taxable income up to Rs. 7 lakh. However, if a taxpayer has an income of just a hundred rupees more (i.e. Rs. 7,00,100) he/she ends up paying tax of Rs. 25,010. In other words, an additional income of j...
The leave encashment for non-government employees is exempt up to a certain limit. This LTA encashment limit was Rs. 3 lakh for two decades (since 2002). It has now increased to Rs. 25 lakhs w.e.f. FY 2023-24.
In case of withdrawals, where EPF account is not seeded with account holders’ PAN card, TDS rate will come down to 20% w.e.f. 1stApril, 2023.
The government has hiked the threshold limits for presumptive schemes under section 44AD and section 44ADA. The turnover u/s 44AD has been increased from Rs. 2 crores to Rs. 3 crores and for professionals’ u/s 44ADA from Rs. 50 lakhs to Rs. 75 lakhssubject to 5% cash receipts.
Section 35D of the Income Tax Act provides for amortization of certain preliminary expenses which are incurred prior to the commencement of business or after commencement, in connection with extension of undertaking or setting up of a new unit. This includes expenditure in connection with preparation of feasibility report, project report etc. It sh...
In the recently passed Finance Bill 2023, LTCG tax benefits on debt mutual funds have been taken away. So, w.e.f. 1stApril, 2023, any investments in debt mutual funds (subject to the equity exposure upto 35%) will be taxed as short-term capital gains. Kindly read the below article to know in detail about this amendment. Long Term Tax benefits remov...
Mar 29, 2023 · As the new financial year 2023-24 approaches, taxpayers in India will be affected by several changes to the income tax rules. The changes were announced by Union Finance Minister...
Feb 2, 2023 · New tax regime 2023: Budget 2023 announced a few changes in the new income tax regime and revised tax slabs to make it more attractive for taxpayers. Here we have answered a few important questions regarding the revised new tax regime 2023.
- As per Budget 2023, the income tax slabs under the new income tax regime will now be as follows:(effective April 1, 2023). Table Rs 0 to Rs 3 lakh...
- Budget 2023 has hiked the basic exemption limit to Rs 3 lakh from Rs 2.5 lakh under the new tax regime, this will save you Rs 2500.
- The highest surcharge rate, which formerly applied to people with incomes beyond Rs 5 crore, was 37%; it has since been reduced to 25%. As a result...
- The changes announced on February 1, 2023, will become applicable from April 1, 2023, for FY 2023-24 once the proposals are passed by Parliament. F...
- For FY 2023–2024, no changes have been made to the old tax system. For FY 2023–24, the income tax rates and slabs under the old tax regime remain i...
- Depending on the taxpayer's age, the old tax regime offered different basic income exemption levels. The basic income exemption cap is Rs 2.5 lakh...
- From FY 2023-24, the new tax regime will be the default option. Every fiscal year, an individual or Hindu Undivided Family (HUF) must select betwee...
- The amount of the Section 87A rebate available under both income tax regimes has also been changed. Under the old tax regime, a maximum Rs 12,500 r...
- If a salaried individual does not specify that he or she prefers the old tax regime, their employer will deduct taxes on salary income based on the...
- Under the revised new tax regime, the individual will forego 70 deductions and tax exemptions, which includes HRA tax exemption, LTA tax exemption,...
Apr 3, 2023 · Here are ten big income tax changes that will impact taxpayers in FY 2023-24: New income tax regime to be set as default regime. Starting 1 April 2023, the new income tax regime will be considered as the default tax regime. However, taxpayers will have the option to choose the old regime.
Dec 29, 2023 · Though the changes were announced in 2023, they will impact you when you pay income tax while filing your income tax return (ITR) in July 2024 and in future financial years. Here is a look at these income tax changes and how they will impact you in 2024.
