Many rules will change in the new financial year 2023-24 starting from April 1. Many rules related to income tax are also going to change in the new financial year. These changes were proposed in the Union General Budget presented on February 1.
If the income is less than seven lakhs, then no TDS
Salaried people are going to be benefitted under the new tax regime from April. For such people, now TDS deduction can be reduced. Such taxpayers, whose taxable income is less than seven lakh rupees and they opt for the new tax regime, then they will not be charged any TDS. For this additional exemption has been given under section 87A of the Income Tax Act.
Only capital gain up to Rs 10 crore is exempt
The benefits available under Section 54 and 54F of the Income Tax Act will be reduced from the new financial year. From April 1, only capital gains up to Rs 10 crore will be exempt under these Acts. Capital gain above this will be taxed at the rate of 20 per cent with the benefit of indexation.
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From April 1, more capital gains tax will have to be paid on the profit made from the sale of the property. Along with this, short-term capital gains tax will now be levied on capital gains arising from transfer, redemption or maturity of market, liquid debentures. The new tax system of income tax will be the default tax system for the financial year 2023-24.
If the annual insurance premium exceeds five lakhs, then tax on its income
If the annual premium of a new life insurance policy issued on or after April 1 is more than five lakh rupees, tax will have to be paid on the income received from it. This rule will not apply to policies issued till March 1.
Only six digit hallmark jewelry will be sold
After March 31, jewelery bearing the four-digit Hallmark Unique Identification (HUID) will not be sold as Hallmark. From April 1, only hallmarked jewelery with six digits will be sold. Apart from this, there is sure to be a change in the price of LPG cylinder from April 1.
