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New Tax Rules From April 1: Did You Know About Basic Exemption Limit? Check Here


New Delhi: April 1, 2024, marks the start of a brand new monetary yr, bringing with it adjustments to earnings tax guidelines as introduced by Finance Minister Nirmala Sitharaman throughout her Finances speech earlier this yr in February. What are the adjustments which are going down from the kick begin of the brand new monetary yr?

That is the query that could be making rounds in your minds. If that’s the 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 can be a default adoption of the brand new tax regime. This transfer is aimed toward simplifying the tax submitting course of and inspiring extra people to go for this regime. (Additionally Learn: Company Banks To Open This Sunday: Verify What It Is, How They Function & Full Listing)

Nonetheless, taxpayers retain the choice to stay to the previous tax regime if it proves extra useful for them.

Tax Slabs

Underneath the brand new tax regime, the tax slabs are talked about beneath:

– In case your earnings is from Rs 3 lakh to Rs 6 lakh, then you can be taxed at 5 p.c.

– If anybody generates earnings from Rs 6 lakh to Rs 9 lakh in a specific monetary yr, they should 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 earnings from Rs 12 lakh to Rs 15 lakh. 

– Revenue of Rs 15 lakh and above can be taxed at 30 p.c.

Customary Deduction Underneath New Tax Regime

The usual deduction of Rs 50,000, beforehand relevant solely to the previous tax regime, has now been included into the brand new tax regime. This adjustment will successfully cut back taxable earnings beneath the brand new regime.

Discount In Surcharge Fee Underneath New Tax Regime

The best fee of surcharge, beforehand at 37 p.c on earnings above 5 crore, has now been decreased 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 entire premium exceeds Rs 5 lakh can be topic to taxation. 

Enhance In Depart Encashment Tax Exemption Restrict

The tax exemption restrict for depart encashment for non-government staff has been elevated from Rs 3 lakh to Rs 25 lakh. 

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