New Tax Rules in Effect from April 1:
Key Changes You Need to Know
- Published on March 1, 2024
The new financial year begins on April 1st, and with it comes the implementation of income tax changes announced by Finance Minister Nirmala Sitharaman in this year’s budget. Here’s a breakdown of some key changes that taxpayers in Ahmedabad, and across India, should be aware of:
- New Tax Regime as Default: The government aims to simplify tax filing by making the new tax regime the default option. However, taxpayers still have the flexibility to choose the old regime if it offers greater benefit.
- Revised Tax Slabs: The new tax slabs introduce progressive taxation. Here’s a quick look:
- ₹3 lakh to ₹6 lakh: 5%
- ₹6 lakh to ₹9 lakh: 10%
- ₹9 lakh to ₹12 lakh: 15%
- ₹12 lakh to ₹15 lakh: 20%
- Above ₹15 lakh: 30%
- Standard Deduction in New Regime:
The previous standard deduction of ₹50,000, applicable only under the old regime, has now been included in the new regime. This further reduces taxable income for those opting for the new system.
- Reduced Surcharge for High Earners:
The highest surcharge rate of 37% on income exceeding ₹5 crore has been brought down to 25%, offering some relief to high-net-worth individuals.
- Taxation on Life Insurance Maturity:
Maturity proceeds from life insurance policies issued after April 1, 2023, where the total premium paid exceeds ₹5 lakh, will now be subject to tax.
- Increased Leave Encashment Exemption:
The tax exemption limit for leave encashment by non-government employees has been increased from ₹3 lakh to ₹25 lakh.
Remember: This information is for general understanding only. It’s advisable to consult a tax advisor for personalized advice based on your specific income and tax situation.
News Source: Hindustan Times
Considering these changes can be complex. Here’s how our firm in Ahmedabad can help:
Outsourced Accounting: We can manage your accounts and ensure your tax filing adheres to the latest regulations.
Tax Return Filing: Our experienced professionals can handle your income tax return filing, including salaried individuals, partnerships, and MSMEs.
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By leveraging our expertise, you can stay compliant with the new tax rules and potentially reduce your tax burden. Contact us today for a consultation!
Mantra and Co.
Ahmedabad, Gujarat
[+91 8490849012] | [info.mantraandco@gmail.com]