New Tax Regime: New tax regime in India implemented from today, know important changes
New Delhi : The new financial year 2023-24 has started from Saturday i.e. April 1, 2023. With the change in the financial year, many such decisions will be implemented, which will affect your life. Among these are changes in income tax rules, which will directly affect many people in India. New tax slabs will also be applicable. The government says that many taxpayers will benefit from this. Notably, the new tax regime will be the default tax regime unless a taxpayer opts for the old regime while filing Income Tax Return (ITR). These changes were announced by Finance Minister Nirmala Sitharaman in her budget speech this year. Come, let’s take a look at these decisions…
New tax regime effective from today
The new tax regime came into effect from April 1. Under the new tax regime, if a taxpayer’s annual income is Rs 7 lakh, then he will not have to pay any tax. However, there has been no change in the old tax regime with exemptions like investment and housing allowance. For the first time, the benefit of standard deduction of Rs 50,000 has also been proposed under the new tax regime. The Finance Minister has proposed to make the new tax regime i.e. the tax regime without any exemption ‘default’. This means that if you have not chosen your option in the income tax return, then you will automatically go to the new tax regime. Apart from this, the tax rate on royalty and fees for technical services will be increased from 10 per cent to 20 per cent.
Tax exemption limit on premium above 5 lakhs removed
Along with this, let us also tell you that with the implementation of the new tax system in India from today, the limit of tax exemption on the amount received in the case of an insurance policy of more than Rs 5 lakh annual premium will end. Under this, the maturity amount of all life insurance policies (other than unit linked insurance policies or ULIPs) issued after April 1, 2023, whose annual premium is more than Rs 5 lakh, will be taxed.
Women’s Honor Savings Letter started
From April 1, 2023, a new small savings scheme for women ‘Mahila Samman Bachat Patra’ will start. In this, up to two lakh rupees can be invested in the name of a woman or a girl at one time. Under this scheme, interest will be available at a fixed rate of 7.5 percent. Along with this, the option of partial withdrawal will also be available.
Senior Citizens Savings Scheme deposit limit increased
The deposit limit under the Senior Citizen Savings Scheme will be increased from Rs 15 lakh to Rs 30 lakh. At the same time, under the monthly income scheme, the deposit limit will be increased to nine lakh rupees.
Tax on short term capital gains in mutual funds
From April 1, short-term capital gains tax will be levied on mutual funds investing in bonds or fixed income products. Till now investors got long term tax benefits on it, due to which it was a popular investment option. Currently, investors investing in mutual funds linked to bonds or fixed income products pay income tax on capital gains for three years. After three years, these funds pay 20 per cent without the effect of inflation or 10 per cent with the effect of inflation.
Hallmark Unique Identification Essentials
The Bureau of Indian Standards (BIS) is making six-digit ‘alphanumeric’ HUID (Hallmark Unique Identification) mandatory for hallmarked gold jewelery from April 1. Although the government has allowed around 16,000 jewelers to sell old hallmarked jewelery of already ‘declared’ gold till June, this relaxation will be applicable only to the jewelery made before July 2021.
increase in car prices
After the implementation of strict emission norms from April 1, vehicle companies like Maruti Suzuki, Tata Motors are increasing the prices of their various models.
NSE rolls back 6% hike in transaction charges
The National Stock Exchange (NSE) has decided to roll back the 6 per cent increase in transaction charges in the cash equity and futures and options segments from April 1. The additional fee came into effect on January 1, 2021. The securities transaction tax (STT) on option contracts will increase from 0.05 per cent to 0.0625 per cent and on futures contracts from 0.01 per cent to 0.0125 per cent.
Tax on credit card payments while traveling abroad
Credit card payments for foreign travel will be brought under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India (RBI). Its purpose is to ensure that such expenses come under the purview of Tax Collection at Source (TCS).
Revised Credit Guarantee Scheme implemented
A revised credit guarantee scheme for the country’s micro and small scale industries will come into effect from April 1. In this, the annual guarantee fee for loans up to Rs 1 crore is being reduced from a maximum of two per cent to 0.37 per cent. This will reduce the overall cost of credit for small businessmen. The guarantee limit has been increased from Rs 2 crore to Rs 5 crore.
new foreign trade policy effective
The new Foreign Trade Policy (FTP) will also come into effect from April 1. Its objective is to reach the country’s exports to $ 2,000 billion by the year 2030, to make the Indian rupee a global currency and to promote e-commerce exports. FTP 2023 will also give a boost to e-commerce exports and it is expected to reach $200-300 billion by 2030. Apart from this, the value limit for exports through courier services is being increased from Rs 5 lakh per consignment to Rs 10 lakh.