RIVANSHI RAKHRAI
A new financial year is starting on Monday (April 1), bringing in several changes you should know about. Here are some of the main ones
The default option for tax regime will change, but taxpayers can still choose the old regime if it benefits them more.
Under the new tax regime, tax slabs will be adjusted. The tax rebate limit will increase to Rs 7 lakh from Rs 5 lakh.
This means individuals earning up to Rs 7 lakh annually won't be taxed under the new regime.
Effective from April 1, 2023, the basic exemption limit under the new tax regime has been raised to Rs 3 lakh from Rs 2.5 lakh.
The standard deduction of Rs 50,000, previously applicable only in the old regime, is now included in the new regime as well.
The surcharge rate on income above Rs 5 crore has been reduced from 37% to 25%. Maturity proceeds from life insurance policies issued on or after April 1, 2023, with total premiums exceeding Rs 5 lakh, will be taxable.
The leave encashment tax exemption limit for non-government employees, which was Rs 3 lakh since 2022, has been increased to Rs 25 lakh.