Quick Summary
There are many changes in the income tax rules effective from this financial year. Changes in income tax slabs to tax rebate limit raised, No LTCG tax benefit on some debt mutual funds are some of the major changes effective from 1 April 2023. 1) New income tax regime to be default regime Star
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FAQ :
The new income tax regime will be the default tax regime starting April 1, 2023. Taxpayers can still opt for the previous regime if they prefer.
The tax rebate limit has been increased to Rs 7 lakh. This means individuals with an income of Rs 7 lakh or less will not have to pay any income tax.
The standard deduction of Rs 50,000 for employees under the old tax regime remains unchanged. However, this benefit has now been extended to pensioners under the new tax regime.
Investments in debt mutual funds made after April 1, 2023, will be taxed as short-term capital gains, removing long-term tax benefits.
The tax-exempt limit for leave encashment for non-government employees has been increased from Rs 3 lakh to Rs 25 lakh.
Yes, proceeds from life insurance policies where the annual premium exceeds Rs 5 lakh will be taxable from April 1, 2023. This rule does not apply to ULIPs.
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