The new tax rules set to come into effect from April 1 include significant changes that taxpayers should be aware of. Some key highlights are:
- New Tax Regime Default Adoption: The default adoption of the new tax regime will be effective, offering taxpayers a different approach to calculating their taxes.
- Raising the Maximum Tax Rebate: The maximum tax rebate has been increased to ₹7 lakh, providing relief to individuals with incomes below this threshold.
- Standard Deduction: The standard deduction remains in effect, with salaried employees and pensioners benefiting from this provision.
- New Tax Rates: The new tax rates will vary based on income brackets, ranging from nil for incomes up to ₹3 lakh to 30% for incomes above ₹15 lakh.
- TDS Reduction for Salaried Employees: Salaried employees may experience a decrease in TDS due to the new tax law, particularly for those with taxable income below ₹7,00,000 who opt for the new tax regime.
- Electronic Gold Receipt (EGR) Conversion: Converting gold in its physical form using Electronic Gold Receipt (EGR) will no longer incur capital gains tax.
These changes aim to streamline the tax system, provide relief to certain income groups, and align with broader financial reforms. Taxpayers are advised to familiarize themselves with these updates to ensure compliance and optimize their financial planning strategies
