New Income Tax Rules 2024: Income Tax Slab To Standard Deduction, Key Rules Changing From April 1
New Income Tax Rules 2024 In India: April marks the beginning of the new financial year and the beginning of the month is always important for personal finance as most of the proposals made in the budget on income tax come into effect.
This year too, the changes announced by Finance Minister Nirmala Sitharaman in her budget speech will come into effect from April 01.
Financial changes from April 01
– The new tax regime will become the default tax regime from April 01. This means if someone has not decided on his tax filing method, you will pay tax under the new tax regime.
From April 1, 2023, there have been changes in the Income Tax laws. Under the new tax regime, the basic exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. The deduction under Section 87A of the Income Tax Act, 1961 has also been revised from Rs 5 lakh to Rs 7 lakh. That means taxpayers having taxable income up to 7 lakhs will be eligible for full tax exemption under the new income tax slab.
The new tax slab
Individuals earning between Rs 3 – 6 lakh will be taxed at 5%
Individuals earning between Rs 6 lakh to 9 Lakh will be taxed 10%
15% tax will be charged to individuals earning between Rs 9 lakh and Rs 12 lakh
20% tax will be imposed on individuals earning between Rs 12 lakh to Rs 15 lakh
Individuals Earning above Rs 15 lakh will have to pay a 30% tax
Standard Deduction
The standard deduction of Rs 50,000, which was earlier applicable exclusively to the old tax regime, has now been included in the new tax regime. This will further reduce taxable income under the new regime.
Surcharge
Earlier, there was a surcharge of 37% on income above Rs 5 crore. Now, the same has been reduced to 25%. Resulting, People having an income of more than Rs 5 crore will now have to pay less tax if they opt for the new tax regime.
Tax on life insurance maturity
The Finance Minister announced that maturity proceeds from life insurance policies issued on or after April 1, 2023, will be taxable. This tax will be applicable on policies where the total premium is more than Rs 5 lakh.
