New Tax Regime: The new tax regime will be the default option, although taxpayers will still have the option to choose the old tax regime.
Income Tax Exemption Limit: The income tax exemption limit has been raised from Rs 5 Lakh to Rs 7 Lakh. This means that individuals earning up to Rs 7 Lakh will be exempt from paying taxes and do not need to make any investments to claim tax slab exemption.
Standard Deduction: The standard deduction for employees remains unchanged at Rs 50,000 in the previous tax regime. However, pensioners will be entitled to this standard deduction in the new tax regime.
Income Tax Slab: The income tax slab has been revised as follows:
- 0-3 Lakhs: Nil
- 3-6 Lakhs: 5%
- 6-9 Lakhs: 10%
- 9-12 Lakhs: 15%
- 12-15 Lakhs: 20%
- Above 15 Lakhs: 30%
Leave Travel Allowance: The Leave encashment limit for non-government employees has been raised from Rs 3 Lakhs to Rs 25 Lakhs.
Taxation on Debt Mutual Funds: The Debt Mutual Gain will be considered a Short Term Gain and taxed accordingly.
Life Insurance Policy: If the premium paid on a life insurance policy is more than Rs 5 Lakhs, the proceeds from the policy will be taxed. However, this new income tax rule will not apply to ULIPs.
Senior Citizens: The maximum deposit limit has been raised from Rs 15 Lakhs to Rs 30 Lakhs.
E-GOLD Receipt: No tax will be charged on converting physical gold to e-gold receipt.
Tax on Lottery, Online Gaming: The TDS limit has been removed, and all receipts from online gaming, lottery, etc., will be taxable at 30%. TDS will be deducted at the time of receiving the winning amount.
Gifts Received by Resident but not Ordinary Resident: Any gifts received by residents but not ordinary residents above Rs 50,000 will be taxable.
Restriction on Claim U/s 54 and 54F: Sale amount investment under section 54 and 54F has been capped at 10 crores. Any gain above this will be taxed at 20% (with indexation benefits).
UPI Transaction Fee: A 1.10% charge will be levied on UPI transactions above Rs 2000 for using PPI (Prepaid Payment Instruments), not for other customers.
Sale of Gold Jewellery: Only jewellery with a six-digit hallmark unique identification (HUID) will be sold.
Pan and Aadhaar Link: The deadline for linking Pan and Aadhaar has been extended to 30th June 2023.
Please note that this information has been gathered from various online sources, and it is recommended that you refer to the relevant section and rules framed under the respective revenue acts for further details.
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