In the year 2023, the government made some changes in the rules about income tax in the Budget.
These changes will affect people who pay taxes in the year 2024.
The Finance Minister, Nirmala Sitharaman, spoke about these changes in the budget for the financial year 2023-24.
She tried to make the new tax system more appealing by sharing important news.
Besides this, the Income Tax Department has made several changes that will directly affect regular people in 2024. Let’s learn about these tax changes.
Many changes made in the New Tax Regime-
A new way of doing taxes started in the Budget of 2020. The government made this the main way to do taxes in March 2023.
The Finance Minister said that if you don’t choose how to do your taxes, the government will take out TDS following the first tax way.
If you choose the old tax way, then your taxes will be figured out based on that way.
Some changes happened in this new tax way this year. After this, the amount of money you can earn without paying taxes increased from Rs 2.5 lakh to Rs 3 lakh.
The limit for not paying taxes now increased from Rs 5 lakh to Rs 7 lakh.
The usual limit for not paying taxes is Rs 50,000. In this case, you can get a discount of Rs 7.5 lakh in the new tax way.
Rules changed for Debt Funds investors
This year, the Tax Department made a big change for people who invest in Debt Funds.
They took away the special treatment that allowed you not to pay taxes on the money you make when you sell your investments after holding them for a long time.
Now, this money you earn from selling after a long time will be added to your total income, and you’ll need to pay taxes on it based on the tax rates. This new rule started from April 1, 2023.
Reduction in surcharge rate of high net individuals
This year, the Finance Minister, Nirmala Sitharaman, helped people who earn more than Rs 5 crore by reducing an extra charge they had to pay.
The extra charge was reduced from 37 percent to 25 percent. Because of this, the total tax for wealthy individuals went down from 42.74 percent to 39 percent.
Tax will be levied on life insurance amount
The government changed the rules about taxes on the money you get when your life insurance policy ends.
Before, you didn’t have to pay any tax on this money, but now you have to pay tax if your insurance premium is more than Rs 5 lakh.
Capital gains on property sale
The government set a rule that if you earn money by selling a property, you don’t have to pay taxes on it up to Rs 10 crore.
So, if you sell a house, you can keep all the money up to Rs 10 crore without paying taxes, following sections 54 and 54F of Income Tax.
Old IT Returns can be deleted
The Tax Department allows people to remove old tax papers from past years that haven’t been checked. If you haven’t finished checking them, you can easily delete those papers.
30 Rercent Tax on online Gaming
The government now says if you make money by playing games online, you need to give them 30 percent of that money as tax. This new rule started on March 31, 2023.
Before, they used to take a small part of your money (TDS) if you earned more than Rs 10,000 annually. Now, that small part is 30 percent.
