New Financial Year New Rules: All You Need to Know

The new financial year of 2023-2024 has started. Numerous changes will take effect on April 1, 2023, and they will directly affect the monthly budget of the average person. The rules for income tax, NPS withdrawal, and life insurance will all be affected by these changes. Therefore, let’s comprehend what will alter. Read More Business News on our website.

New Tax Slab

In Budget 2023, the tax bracket for the new tax system was changed. There will now be no tax on income up to Rs 3 lakh, 5% on income between Rs 3 and Rs 6 lakh, 10% on income between Rs 6 and Rs 9 lakh, 15% on income between Rs 9 and 12 lakh, 20% between Rs 12 and 15 lakh, and 30% on income above Rs 15 lakh. This tax bracket will go into effect on April 1st.

Standard Deduction Benefit Under New Tax Regime

Standard allowance benefit has been presented under this duty system and it will be of Rs 50,000, which will help individual workers and retired people.

New Tax regime will be a default option

The new tax system has been made the default choice in Budget 2023. This means that the new tax system will be used to calculate your income tax if you choose not to use the old system.

Surcharge Reduction

The public authority has decreased the extra charge under the new duty system. According to the new regulation, for an individual with available pay above Rs 5 crore and deciding on the new duty system, the extra charge will be pertinent at 25% rather than 37%.

Changes to the NPS Withdrawal Policy

 If you intend to withdraw funds from NPS, you will be required to provide KYC documents. Without refreshing these reports, you can not pull out cash.

Debt Mutual Funds no Longer Will have Indexation Benefits

Debt mutual funds no longer have indexation benefits. Short-term capital gain taxation will apply to debt mutual fund investments beginning on April 1.

TDS on online gaming

As of today, the government no longer allows winnings from online games to be deducted from taxes. TDS was imposed on online game winnings in excess of Rs 10,000 up until March 31, 2023. Be that as it may, presently, every rupee acquired from playing web-based games will go under TDS. On this, there will be a 30% reduction.

Tax on high-Priced Life Insurance Policies

If you pay Rs 5 lakh in life insurance premiums each year, you will have to pay taxes.

Reduced TDS on EPF withdrawals

 In some instances, the TDS on EPF withdrawals has been reduced from 30 percent to 20 percent. The tax on EPF withdrawals made without a PAN has been reduced to 20%, as was announced in Budget 2023.

Samman Bachat Patra Yojana

Women can now make investments in the Samman Bachat Patra Yojana through the Mahila Samman Savings Scheme. You will receive 7.5% interest and be able to invest for two years under this.