The current financial year (FY23) is about to end soon. With the next month, the new financial year (FY24) will start and with it the rules of many things will change.
Many rules related to income tax are also going to change in the new financial year, which is important to know. These changes were proposed in the Union Budget 2023 presented in February. So let’s know what things are going to change for common taxpayers in the next few days…
Reduction in TDS of salaried-
From next month, the salaried people are going to benefit under the new tax regime. For such people, now TDS deduction can be reduced. Such taxpayers, whose taxable income is less than Rs 7 lakh and they opt for the new tax regime, will not be charged any TDS. For this, additional exemption has been given under section 87A of the Income Tax Act.
TDS on Listed Debentures-
Section 193 of the Income Tax Act exempts TDS on interest paid in respect of certain securities. If the security is in dematerialized form and is listed on a recognized stock exchange, TDS will not be deducted on the interest paid in such cases. Except this, 10 percent TDS will be deducted on all other payments.
Tax on online games
If you also play online games and win money, then now you will have to pay heavy tax on it. Under the new section 115 BBJ of the Income Tax Act, 30% tax will be levied on such winnings. This tax will be deducted as TDS.
Here you will get less benefit-
The benefits available under Section 54 and 54F of the Income Tax Act will be reduced from the new financial year. From April 01, only capital gain up to Rs 10 crore will be exempted under these sections. Capital gain above this will be taxed at the rate of 20 per cent with the benefit of indexation.
Higher tax on capital gains
From April 1, 2023, higher capital gains tax will have to be paid on the profit made from the sale of the property. Now the interest claimed under section 24 will not be included in the cost of buying or repairing. With this, capital gains arising from transfer, redemption or maturity of market-linked debentures will now attract short-term capital gains tax.
These changes regarding gold-
If you convert physical gold into EGR or electronic gold receipt into physical gold from the month of April, then you will not have to pay any capital gains tax on it. However, to take advantage of this, you will have to get the conversion done from a SEBI registered vault manager.
