New Financial Year, New Tax Rules
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21 March 2024
A new financial year will begin from Monday (April 1) and many changes will come into effect
Here's a look at some of the major changes you should be aware of, including expanded basic exemption limits among others
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The default adoption of the new tax regime is a notable modification. However, taxpayers will still have the liberty to stick to the old tax regime if it is more beneficial to them
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Those who go with the new tax regime will be taxed as per new slabs. Under the new regime, the tax rebate limit will be enhanced to Rs 7 lakh from Rs 5 lakh
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This means that no tax would be levied on individuals with annual income of up to Rs 7 lakh under the new tax regime
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As announced in the last Budget, effective from April 1, 2023, the basic exemption limit was hiked to Rs 3 lakh from Rs 2.5 lakh under the new tax regime
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The standard deduction of Rs 50,000, previously applicable exclusively to the old tax regime, has been incorporated into the new tax regime
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The highest rate of surcharge of 37% on income above Rs 5 crore was reduced to 25%
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Maturity proceeds from life insurance policies which are issued on or after April 1, 2023, and where the total premium exceeds Rs 5 lakh, will be subject to taxation
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The leave encashment tax exemption limit for non-government employees was Rs 3 lakh since 2022 and is now increased to Rs 25 lakh
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