New Tax Rules Will Be Effective From April 1: Here’s All You Need To Know On Taxes For Different Slabs

Today is the last working day of the financial year 2023-2024. April 1 will mark the first day of the financial year 2024-2025. Being an election year, the supplementary Budget bill was tabled in Parliament in February by Finance Minister Nirmala Sitharaman. The Finance Minister proposed a number of changes in the tax regimes that will become effective from April 1, 2024. Here’s a look at some of the changes in tax rules that will be effective from April 1:

The new tax regimes have been proposed to streamline the tax filing procedure and widen the participation of people in the new tax regime. However, taxpayers have the option to stick to the older tax regime if it is more beneficial for them.

• The Tax slabs are as follows:

The salient featured of the new tax regime is as follows-

• The standard deduction, which was available in the previous tax regime at ₹50,000, has been incorporated into the new tax regime as well. This will be beneficial as it will further reduce taxable income.
• The surcharge on income above ₹5 crore has been reduced from 37% to 25%.
• Also, maturity benefits from life insurance policies issued on or after April 1, 2023, whose premiums exceed ₹5 lakh, will be subject to taxation.
• Leave encashment tax benefits for non-government employees have been increased from ₹3 lakh to ₹25 lakh.

Income tax exemption limit is:

• Rs 2,50,000 for Persons below 60 years of age, HUFs, and NRIs.
• Rs 3,00,000 for citizens aged above 60 years but less than 80 years.
• Rs 5,00,000 for very senior citizens aged above 80 years.

Surcharge and cess will be applicable over and above the tax rates.