As the start of new financial year approaches, new financial regulations will be implemented, affecting how financial transactions and operations are conducted.
Some major changes starting from April 1, 2024 are
1. PAN-Aadhaar Linkage Deadline
PAN must be linked with Aadhaar by March 31, 2024, to avoid PAN cancellation and Rs 1,000 penalty from April 1, 2024.
2. Fastag KYC Update
Fastag users must update their KYC details by March 31, 2024, to avoid transaction disruptions, as mandated by the National Highways Authority of India (NHAI).
3. SBI to Increase AMC for Debit Cards
Starting from April 1, 2024, SBI will impose an annual maintenance fee for its debit card holders. The fee varies based on the type of card:
- Classic/Silver/Global/Contactless : Rs. 200 + GST
- Yuva/Gold/Combo/My Card (Image Card) : Rs. 250 + GST
- Platinum : Rs. 325 + GST
- Pride/Premium Business : Rs. 425 + GST
4. SBI Credit Card Rewards Change
SBI credit cardholders now won't be able to earn reward points for rent payments from April 1, 2024, onwards, aligning incentives with consumer behavior and improving policy efficiency.
5. Automated PF Transfer System
EPFO introduces automated PF account transfer from April 1, 2024, simplifying job changes and enhancing employee access to retirement savings.
6. LPG Price Adjustment
LPG cylinder prices will be updated nationwide on April 1, 2024, maintaining stability despite minimal fluctuations during Lok Sabha Election 2024 period, ensuring affordable energy access.
Some Changes effective from April 2023 continuing in April 24 - March 25 include
1. Default Income Tax Regime
From April 2023, the new income tax regime becomes default, but taxpayers can still opt for the previous one.
2. Tax Rebate Limit Increase
Tax rebate limit rises to Rs 7 lakh from Rs 5 lakh, making incomes below Rs 7 lakh are tax-free without requiring additional investments for exemptions.
3. Standard Deduction
Standard deduction remains at Rs 50,000 for employees in the old tax regime, extended to pensioners.
Salaried individuals with incomes over Rs 15.5 lakh benefit by Rs 52,500.
4. Income Tax Slab Changes
New tax rates range from nil for incomes up to Rs 3 lakh to 30% for incomes above Rs 15 lakh.
- Rs 3 lakh - 6 lakh = 5%
- Rs 6 lakh - 9 lakh = 10%
- Rs 9 lakh - 12 lakh = 15%
- Rs 12 lakh - 15 lakh = 20%
- Rs 15 lakh and above = 30%
5. LTA Exemptions
Leave encashment exemption limit for non-government employees rises to Rs 25 lakh since 2022.
6. Insurance Policies Taxed
Life insurance above Rs 5 lakh annual premium become taxable, except for ULIPs.
7. Benefits for Senior Citizens
Senior citizen savings scheme deposit limit increases to Rs 30 lakhs, and monthly income scheme limits rise to Rs 9 lakhs for single accounts and Rs 15 lakhs for joint accounts.
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