Rules Change: These tax-related rules will change from April 1, know here...

The last days of March are going on, this month is the last month of this financial year (New Financial year) and with this, the financial year 2023-24 is going to end. This month is considered very important for every sector, especially for the taxpayers, because with the new financial year from 1st April, there are many changes which affect everyone from the common man to every special person. Many income tax rules will change from April 1. As a taxpayer, you need to be aware of these changes. This time, rules related to new and old tax regimes are also going to be implemented from April 1. If you are not aware of these changes yet, then we are going to tell you here which are the rules that are going to be changed and which tax-related changes can benefit you and which can harm you.

The new tax regime will be the default
If you have not yet chosen between the old tax regime and the new tax regime, then quickly choose the method of filing tax at your convenience. If you do not choose either of the two by March 31, you will automatically move to the new tax regime. Meaning the new tax regime will become the default.

In the new tax regime, you will not have to pay any tax on earnings up to Rs 7 lakh. But, if you want to save tax by investing, the old tax regime may be better for you.

There will be a standard deduction in the new tax regime
Let us tell you that earlier a standard deduction of Rs 50 thousand was applicable in the old tax regime. Now it has been included in the new tax regime. Under standard deduction, tax exemption is available on Rs 50 thousand, which means you can deduct Rs 50 thousand from your salary without thinking anything.

This reduces your taxable income. Some people benefit so much from this exemption that no tax is levied on them with the rebate under Section 87A of the Income Tax Act. Those with total income less than Rs 5 lakh get exemption under Section 87A up to Rs 12,500.

Privately employed people will get tax benefits here
If you work in the private sector and take less leave, then you are going to get more tax exemption on the money you receive instead of leave. Earlier, if a non-government employee took money from the company in exchange for his remaining leave, then only the amount up to Rs 3 lakh was tax-free. But, now this limit has been increased to Rs 25 lakh.

Those earning more than this many crores will save more tax
You will be surprised to know that from April 1, people with an annual income of more than Rs 5 crore will also get huge benefits. The government has reduced the surcharge on income above Rs 5 crore by 12 percent. Earlier it was 37 percent, which will become 25 percent from April 1. However, this benefit will be available only to those people who choose the new tax system.

Tax on maturity income of insurance policy also
According to the new rules, now tax will have to be paid on the maturity income received from a life insurance policy. This has been announced by Finance Minister Nirmala Sitharaman. Whatever policies are issued on or after April 1, 2023, will come under the purview of this rule. However, this tax will have to be paid only by those people whose total premium is more than Rs 5 lakh.

PC Social media