These New Tax Rules will be in effect From April 1, 2024

Finance Minister Nirmala Sitharaman announces the new budget on February 1, 2024. Thus, the country will be following the new budget from 1 April 2024 onwards, marking the new financial year. This will also lead to changes in the taxation policies. Tax is a big part of the yearly budget. Its rules and regulations change as per the needs of the country’s growth. We will share details about new tax rules in the market applicable from 1st April below.

New Tax Rules Applying From April 1, 2024

The new tax rules for 2024-25 are as follows. The first and foremost efforts will be to encourage more and more people to follow the new tax regime. However, they can choose between the old and the new one. We all know that the old regime has 50,000 of standard education. It will now be a part of the new regime as well. Now the Insurance proceeds will be taxable. It will include those insurance proceeds that have a premium of more than Rs. 5 lakhs and are taken after 31 March 2023. The leave encashment limit reaches Rs. 25 Lakhs from Rs. 3 lakhs.

We know that the higher the profit, the more the tax. The surcharge on income above Rs. 5 crore was 37%. It is reduced to 25%. The following are the details about the tax slabs with the percentage of tax charge.

between Rs. 3 lakhs to Rs. 6 lakhs: 5%

between Rs. 6 Lakhs to Rs. 9 Lakhs: 10%

between Rs. 9 lakhs to Rs. 12 Lakhs: 15%

between Rs. 12 Lakh to Rs. 15 Lakhs: 20%

15 Lakhs and above: 30%

Thus, the new tax regime will become the default regime. The users will be able to change it to the old tax regime. However, if one doesn’t change, it will automatically submit as per the new tax regime. Apart from that, PFRDA (Pension Fund Regulatory and Development Authority) will be using Aadhar card-based two-factor authentication. It will help improve the security of the clients.

There will be strict rules for the FASTag. You need to have your KYC updated for the car’s FASTag with your bank account. The taxation rules have a big plus point for the reduction of surcharge to 25% for the higher income earning group. Thus, it will be beneficial for them. Apart from that, the minimum taxable income for the year is Rs. 3,00,000. If you earn more, you will be taxable. The government’s budget passed in February 2024 is an Interim Budget. It will be applicable for a few months only. The winning government will announce the final budget for the year.