On april 1, the first day of the new financial year, the financial year 2023-24 will be opened, starting from the household budget to the corporate budget. This will increase the money flow and investment in the market in April. In this situation, there are many important things that the monthly salary earners should take care of while many changes are not going to be implemented in the new financial year through the budget announcements. You must be careful as the changes from april 1 will affect your money and taxes. We have compiled all the income tax changes effective from april 1, 2023, for you. This will be useful for your tax planning for the financial year 2023-24.
No one can forget the announcement of a tax rebate of up to 7 lakhs under the new income tax system in the budget announcement to reduce the burden on individual and monthly wage earners. This change will not only come into effect from april 1 but will also be operational from the financial year 2023-24. Currently, under the new income tax system, this tax rebate amount is 5 lakhs. The number of tax slabs in the new income tax system introduced by nirmala sitharaman has been reduced from 6 to 5 in the budget announcement. This new change comes into effect on april 1. Not only this, the zero tax rate which was 2.5 lakhs has now been increased to 3 lakhs under the new income tax system.
New income tax slab effective from 1st april for the financial year 2023-24: 300000-600000: 5 percent tax
600000 -900000: 10 percent tax
900000 - 1200000: 15 percent tax
1200000 -1500000: 20 percent tax
Above 1500000 rupees: 30 percent tax.
The standard deduction concession given to all monthly salary earners and pensioners is 52500 rupees under the new income tax levy starting from 1st april 2023-24. This is to provide an additional benefit to those opting for the new income tax regime. It can be used while paying income tax for the financial year 2023-24. The excess tax rate in india is currently 42 percent. In order to reduce the excessive income tax assessment, the central government announced in the budget notification that the surcharge on the income tax has been reduced from 37 percent to 25 percent. This will bring down the excess tax rate from 42 percent to 39 percent, and this change will be implemented for the financial year 2023-24 starting from april 1. At the level of income tax deduction of Rs 3 lakh under leave encashment, which has remained unchanged since 2002, the excess salary of government employees is now In accordance with the increase, the leave encashment limit has been increased from 3 lakh rupees to 25 lakh rupees. Now the new income tax system is the tax system for everyone, i.e. Default tax system. At the same time, the government is allowing income taxpayers to use the old tax system.