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5 big rules of income tax will be changed from April 1, taxpayers should be alert

There are many changes in income tax rules from the new financial year. Changes in tax exemption in income tax slab, no LTCG will be benefited on some date mutual funds, these are some of the major changes that are effective since 1 April 2023.

Tax exemption limit increased to ₹ 7 lakh

Increasing the tax exemption limit from ₹ 5 lakh to ₹ 7 lakh means that a person whose income is less than ₹ 7 lakh, does not need to show any documents to get tax exemption. His entire income will be tax free.

Standard Didlation

There is no change in Standard Didaction of ₹ 50000 to be provided to employees under the old tax system. For pensioners, the Finance Minister announced to expand the benefits of Standard Didaction in the new tax system. Every salaried person with income of Rs 15.5 lakh or more will have a profit of Rs 52,500.

Changes in income tax slab

There are new tax rates

0-3 lakh-zero
3-6 lakh-5%
6-9 lakh- 10%
9-12 lakh-15%
12-15 lakh-20%
Up to 15 lakhs- 30%
No LTCG tax benefits on these mutual funds

From April 1, investment in date mutual funds will be taxed as short term capital gains. With this step, investors will be deprived of profit by doing long term. Explain that this benefit made such investment popular.

Benefits to senior citizens

The maximum deposit limit for Senior Citizen Savings Scheme will be increased from ₹ 15 lakh to ₹ 30 lakh. The maximum deposit limit for the monthly income scheme will be increased from Rs 4.5 lakh to Rs 9 lakh for single accounts and Rs 7.5 lakh for joint accounts to Rs 15 lakh.