- New income tax regime to be default regime
- Tax rebate limit raised to Rs 7 lakh
- Standard deduction of Rs 50000 provided to employees under old tax regime extended to new tax regime
- Changes in Income Tax slabs
The new tax rates are
0-3 lakh - nil
3-6 lakh - 5%
6-9 lakh- 10%
9-12 lakh - 15%
12-15 lakh - 20%
above 15 lakh- 30%
- The leave encashment for non-government employees is exempt up to a certain limit. This limit was Rs 3 lakh since 2002 and is now increased to Rs 25 lakh
- No LTCG tax benefit on these Mutual Funds and als investment in Market Linked Debentures (MLDs) post April 1 will be short term capital assets.
- Proceeds from life insurance premium over the annual premium of Rs 5 lakh would be taxable from new financial year i.e. from 1st April 2023.
- The maximum deposit limit for senior citizen savings scheme will be increased to Rs 30 lakhs from Rs 15 lakhs and the maximum deposit limit for monthly income scheme will be increased to Rs 9 lakhs from 4.5 lakhs for single accounts and Rs 15 lakhs from Rs 7.5 lakhs for joint accounts.
- Effective 1/4/2023 physical gold conversion to e-gold receipt not to attract capital gains tax