New Delhi: April 1, 2024, marks the start of a brand new monetary 12 months, bringing with it adjustments to revenue tax guidelines as introduced by Finance Minister Nirmala Sitharaman throughout her Price range speech earlier this 12 months in February. What are the adjustments which might be happening from the kick begin of the brand new monetary 12 months?
That is the query that could be making rounds in your minds. In that case, here is a breakdown of the important thing adjustments taking impact from April 1, 2024. (Additionally Learn: Mutual Fund Buyers ALERT! One Wants To Do THIS By March 31 To Keep away from Transaction Blocks)
New Tax Regime
From April 1, 2024, onwards, there will probably be a default adoption of the brand new tax regime. This transfer is geared toward simplifying the tax submitting course of and inspiring extra people to go for this regime. (Additionally Learn: Company Banks To Open This Sunday: Examine What It Is, How They Function & Full Listing)
Nonetheless, taxpayers retain the choice to stay to the outdated tax regime if it proves extra helpful for them.
Tax Slabs
Below the brand new tax regime, the tax slabs are talked about beneath:
– In case your revenue is from Rs 3 lakh to Rs 6 lakh, then you can be taxed at 5 p.c.
– If anybody generates revenue from Rs 6 lakh to Rs 9 lakh in a specific monetary 12 months, they must pay 10 p.c tax.
– In case your earnings are between Rs 9 lakh and Rs 12 lakh, you can be entitled to pay 15 p.c tax.
– You’ll be entitled to pay 20 p.c tax on the revenue from Rs 12 lakh to Rs 15 lakh.
– Revenue of Rs 15 lakh and above will probably be taxed at 30 p.c.
Normal Deduction Below New Tax Regime
The usual deduction of Rs 50,000, beforehand relevant solely to the outdated tax regime, has now been included into the brand new tax regime. This adjustment will successfully cut back taxable revenue beneath the brand new regime.
Discount In Surcharge Price Below New Tax Regime
The very best fee of surcharge, beforehand at 37 p.c on revenue above 5 crore, has now been lowered to 25 p.c.
Taxation On Maturity Proceeds From Life Insurance coverage Insurance policies
From April 1, 2023, maturity proceeds from life insurance coverage insurance policies issued the place the full premium exceeds Rs 5 lakh will probably be topic to taxation.
Improve In Go away Encashment Tax Exemption Restrict
The tax exemption restrict for go away encashment for non-government workers has been elevated from Rs 3 lakh to Rs 25 lakh.
