Introduction:
The Indian government has introduced new tax rules for income tax in the Union Budget 2023. One significant New Income Tax rules change is making the New Income Tax Regime a usual way to pay taxes.
Union Finance Minister Nirmala Sitharaman said the new tax system will give more money to people instead of making them want it or not.
Starting in 2023, new top tax rules came out. They created a New Income Tax rules new tax plan that was optional from April 2019 until March of this year. The old tax way will still be there for people to use.
But if someone doesn’t say which one they want when taking money from their paycheck or filling out the income tax papers, then it can only based on New Income Tax rules what you earn according to new rules.
The tax refund was raised to Rs 7 lakh for people who earn below Rs 5 lakh a year. They kept the average reduction of Rs 50,000 in place for the new tax scheme. This helped to save taxes up to Rs 7.5 lakh from income with rebate included.
New Income Tax rules introduced in 2023:
New Income Tax rules introduced in 2023 (image Source: businesstoday.in)
The Centre took away the Long Term Capital Gains (LTCG) advantage for debt mutual funds after March 31, 2023. It said that capital gains on debt mutual fund units will be considered as regular income tax from now on. Money put into debt mutual funds New Income Tax rules before and on March 31, 2023, will be taxed the same as old LTCG taxes.
Lastly, the charge rate for people with lots of money was lowered from 37% to 25%. This made their actual tax amount drop from 42.74% down to only 39%. This action started only with the New Tax Regime.
The government has made new rules about taxing money from life insurance payouts. If you’ve paid more than Rs 5 lakh in one year for non-ULIP policies, the cash at maturity will be considered income that can be taxed.
The taxable payout amount will be worked out using the rules for one or more non-ULIP insurance plans. For ULIP plans, the money you get when they end is taxed if you pay more than Rs 2.5 lakh for those policies in a year.
The Centre also put a limit of Rs 10 million on the New Income Tax rules highest reduction from profits made by selling homes. This will affect people, especially wealthy ones – HNIs.
They sell their old home or housing and invest the money in a new one to save tax on long-term capital gains (LTCG).
In 2023, the people who handle income tax said they would let you throw out ITRs that needed to be checked and make changes.
The new rule also starts a 30% TDS on winning games online, which before only happened when wins were more than Rs. 10,00 in one financial year until March of the following year.
If the tax is taken out too much, people will need to file a tax return when they want their income tax money back.
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