Some major changes in the New Income Tax Regime for the F.Y.2023-24 and A.Y.2024-25 as per Budget 2023|With Auto Calculate and Auto Income Tax Preparation Software in Excel for the Non-Govt Employees for the F.Y.2023-24 and A.Y.2024

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Some major changes in the New Income Tax Regime for the F.Y.2023-24 and A.Y.2024-25 as per Budget 2023|From April 1, 2023, the new fiscal year 2023-24 will begin. Union Finance Minister Nirmala Sitharaman’s Budget announcements will come into effect from April 1. Therefore, Here’s a brief overview of the income tax changes that will affect taxpayers in 2023-24.

1. In other words, The new income tax regime will be the default regime with effect from April 1, 2023, the new income tax regime will operate as the default tax regime. However, taxpayers will still have the option of choosing the old regime. However, If you are a salaried taxpayer, they will be deducted from TDS based on the new tax regime rates. Therefore, when declaring investments, you need to choose carefully between the Old and New Regimes.

2. Changes in income tax plates under the New TaxationRegime

     Slab                                            Tax rates

    Up to 3,00,000                                    zero

    3,00,001 – 6,00,000                             5%.

    6,00,001-9,00,000                               10%.

    9,00,001-12,00,000                             15%.

    12,00,001-15,00,000                           20%.

    Over 15,00,000                                   30%.

3. Refund u/s 87A under New Tax Scheme

The rebate u/s 87A has increased under the new tax Regime. Taxpayers with income up to Rs 7 lakhs do not have to pay any tax. The maximum rebate under the New Tax Regime is Rs 25,000. In short, anyone whose income under the new tax regime is less than or equal to Rupees Seven lakhs.

4. Normal deductions

The standard deduction of Rs 50,000 under the old regime will also be extended under the new regime. Under the new regime effective from April 2023, a standard deduction benefit of Rs 50,000 will be allowed for salaried employees and retirees opting for the new tax regime.

5. Payment of additional fees

The surcharge rate of 37% was reduced to 25% under the new Tax Regime. Taxpayers with income above Rs 5 crore will pay a surcharge of 25 % instead of 37 % under the new Tax Regime.

6. Life Insurance Policies

W.e.f 1st April 2023, if the aggregate premium of life insurance policies issued from 1st April 2023 exceeds Rs. 5 lakhs, the gain arising from such policies above the annual premium of Rs.5 lakh will be taxable (i.e. up to Rs. 5 lakh will be exempted)

7. Reimbursement of holiday pay

Leave exemption The refund exemption in retirement for non-government salaried employees has been increased to Rs 25 lakhs from Rs 3 lakhs on April 1, 2023

8. Senior Citizens Savings Scheme

Senior citizens can now deposit up to Rs 30 lakh in the senior citizen savings scheme, compared to the previously restricted deposit limit of Rs 15 lakh. Also, the maximum deposit for the monthly income scheme has been increased to Rs 9 lakhs from Rs 4.5 lakhs for individual accounts. For joint accounts, the threshold has been increased to Rs 15 lakhs from Rs 7.5 lakhs

Download the automated U/s 89(1) income tax arrears calculator with Form10E from tax year 2000-01 to tax year 2022-23 (updated version)

Some major changes in the New Income Tax Regime for the F.Y.2023-24
Some major changes in the New Income Tax Regime for the F.Y.2023-24
Some major changes in the New Income Tax Regime for the F.Y.2023-24

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