The new financial year i.e. 2023-24 is starting from April 1, 2023. As we enter the new financial year, there will be many changes including income tax, the list of which is long. These changes will have a direct impact on your and our financial health.
Apart from this, many new announcements have also been made in the general budget of 2023-24, which are going to be implemented from April 1.
At the same time, many rules related to purchase of gold, mutual funds, reit-invit, premium payment of life insurance policy are also changing.
Let’s know about the necessary changes…
New tax regime
If you do not choose either the old or new tax regime to file income tax return from the next financial year, then the default will be included in the new regime. It was introduced by the Finance Minister in the budget of 2023-24.
In the new tax regime, the exemption limit has been increased from Rs 5 lakh to Rs 7 lakh. In the old tax regime, income up to Rs 2.5 lakh is tax free.
It is worth noting that like the old tax system, you will not get the benefit of many types of exemptions in the new one.
If you opt for the new tax regime, you will have to pay a tax of Rs 25,000 on an annual income of Rs 7.27 lakh.
Standard Deduction: Can avail Rs 50,000
Standard deduction for salaried employees will now be a part of the new tax regime.
For this, the taxpayer can claim up to Rs 50,000, while every salaried individual with an income of Rs 15.5 lakh or more is entitled to a standard deduction of Rs 52,500.
From the new financial year, the limit of leave encashment for non-government employees has been increased to Rs 25 lakh. Earlier it was three lakh only. In 2002 it was raised to Rs 3 lakh.
7.50 percent interest in this scheme
Mahila Samman Savings Scheme has been started for the first time. Under this, a maximum of two lakh rupees can be invested in the name of women or girls. On this, fixed interest will be given at the rate of 7.50 percent.
Presented by Finance Minister Nirmala Sitharaman in the budget of 2023-24, this scheme will be for two years only.
That is, the Mahila Samman Savings Scheme will remain till March 2025. A total interest of Rs 30,000 will be available on an investment of Rs 2 lakh during this period. It also has the facility of partial withdrawal.
Double investment in savings scheme for senior citizens
Investment in Senior Citizen Savings Scheme (SCSS) and Post Office Monthly Scheme (POMIS) will be doubled. The limit of Rs 15 lakh per annum in SCSS will now be Rs 30 lakh.
That is, if someone had invested a maximum of Rs 15 lakh in it earlier, then he would have got an interest of Rs 6 lakh in 5 years at 8 percent interest rate.
Interest of Rs 12 lakh will be available on the maximum investment limit of Rs 30 lakh.
Earlier the personal investment limit in the Post Office Monthly Scheme was Rs 4.5 lakh, which has now been increased to Rs 9 lakh. This investment limit has been increased from Rs 9 lakh to Rs 15 lakh for a joint account.
30% tax on online gaming
No matter how much you earn from online gaming, now 30% tax will have to be paid. Earlier, only income of Rs 10,000 or more was taxed.
Apart from this, while filing income tax return, now information about the amount received through online gaming will also have to be given.
LTCG benefit will not be available
From April 1, the rules of investment in debt mutual funds will change. Under this, now the definition of Long Term Capital Gains Tax (LTCG) has changed.
The new rules will apply to debt mutual funds that have invested less than 35 per cent in the stock market.
Under this, short term capital gains tax will be levied on the return on investment. Due to this, investors will have to pay more tax than before.
Vehicles will be expensive
New emission standards will be implemented in the country from April 1. With this, vehicle manufacturers have started making vehicles or updating engines of old vehicles according to the stringent emission norms of the second phase of BS-VI. Due to this the production cost of the companies is increasing.
This is the reason why many companies including Maruti, Tata Motors, Honda, Kia and Hero MotoCorp are going to increase the prices of vehicles.
Many cars may be closed
Government is bringing new rules to curb pollution and carbon emissions. Real Time Driving Emission (RDE) and the second phase of BS-VI will be implemented from April 1.
Vehicles that do not comply with the new rules will not be sold. Due to this, the sale of many cars including Maruti Alto, Honda Cars WRV and Hyundai i20 diesel may stop.
Toll tax: Expensive up to seven percent
Toll tax will become expensive in the country. In UP it will become costlier by 7%. Toll will be collected at the toll plazas of National Highways at increased rates. The hike will be applicable from single journey to monthly pass.
Junk policy: 15 year old vehicles will be removed
To reduce the pollution caused by vehicles, to increase the fuel efficiency of vehicles, the central government is going to implement the vehicle junk policy from April 1.
Under this, there is a preparation to send 15 year old vehicles to the junk in the country. The government has made it clear which vehicles are going to be scrapped.
Vehicles sent for scrap will be recycled. Metal, rubber, glass etc. will be obtained from this, which can be used again in making vehicles. Under this policy, if someone sends his vehicles to the scrap and buys a new vehicle in its place, then up to 25 percent road tax will be exempted on that new vehicle.
Petrol-Diesel
New prices of petrol-diesel and gas will be released from April 1. In such a situation, it is expected that there will be no increase or any change in them. However, last month domestic gas cylinder was increased by Rs 50.
Higher tax on life insurance policies
Now tax will have to be paid on income from traditional life insurance policies for annual premium of more than five lakh rupees issued from April 1.
However, this will not affect ULIP (Unit Linked Plan Insurance) plans. In such a situation, the effect of this change will be on the policyholder paying more premium.
Gold: Now six-digit hallmark on purchase
The Consumer Ministry is changing the rules for the sale of gold jewelery from April 1. According to the new rule, after March 31, 2023, jewelry with the four-digit Hallmark Unique Identification (HUID) will not be sold. From April 1, 2023, only hallmarked jewelery with six digits will be sold.
This will guarantee the purity and quality of the jewellery. This will make it easier to gather all the information.
No tax to be paid on converting physical gold into e-gold
In a move to encourage electronic gold purchases, now there will be no capital gains tax on conversion from physical gold to e-gold. That is, now investors can sell jewelery and invest it in e-gold.
There will also be no capital gains tax on conversion from e-gold to physical gold. Till now, gold was taxed at 20 per cent after three years of purchase and 4 per cent cess on long-term capital gains.
The move taken by the government in the budget will encourage conversion of physical gold into e-gold.
