ITR filing rule change: Taxpayers Alert! 10 rules for filing income tax will change from April 1, know all changes here

If you come under the tax net, then from April 1, you can see many major changes in the methods of filing income tax.

Income Tax New Rules: If you file ITR every year, then it is very important to take care of some important things. You can see many changes in the methods of filing income tax from April 1 because there is going to be a big change in these 10 big rules of income tax from April 1. There can also be changes in the income tax exemption limit in the income tax slab. New Income Tax Slab will act as default. Some tax payers will still be able to opt for the old tax regime.

Take special care of these 10 things

1. The government had brought in an alternative income tax regime in Budget 2020-21, under which individuals and Hindu Undivided Families (HUFs) were to be taxed at lower rates if they did not avail of special exemptions and deductions, such as house rent allowance (HRA). HRA), interest on home loan, investments made under section 80C, 80D and 80CCD. Under this, the total income up to Rs 2.5 lakh was tax free.
2. Now the tax exemption limit has been increased from Rs 5 lakh to Rs 7 lakh. This means that a person whose income is less than Rs 7 lakh does not need to invest anything to claim the exemption and the entire income will remain tax free. No matter how much has been invested.
3. There has been no change in the standard deduction of Rs 50,000 provided to employees under the old tax regime. For pensioners, the Finance Minister has announced to extend the benefit of standard deduction in the new tax regime. Every salaried person earning Rs 15.5 lakh or more will get a benefit of Rs 52,500.
4. Leave encashment for non-government employees is exempt up to a certain limit. This limit was 3 lakh rupees from 2002 and now it has been increased to 25 lakh rupees.
5. From April 1, investments in debt mutual funds will be taxed as short term capital gains. The move would deprive investors of the long term tax exemption that had made such investments popular.
6. Investments in Market Linked Debentures (MLDs) after April 1 will be short term capital assets. This will end the grandfathering of earlier investments and will have a slight negative impact on the mutual fund industry.
7. Income from life insurance premium in excess of an annual premium of Rs 5 lakh will be chargeable to tax from the new financial year i.e. from April 1, 2023. Presenting Budget 2023, Finance Minister Nirmala Sitharaman also announced that the new income tax rule will not apply to ULIPs (Unit Linked Insurance Plans).
8. The maximum deposit limit for Senior Citizens Savings Scheme will be increased from Rs 15 lakh to Rs 30 lakh. The maximum deposit limit for Monthly Income Scheme will be increased from Rs.4.5 lakh to Rs.9 lakh for single accounts and from Rs.7.5 lakh to Rs.15 lakh for joint accounts.
9. Presenting Budget 2023, Sitharaman had said that no capital exemption would be taxable if physical gold is converted into Electronic Gold Receipt (EGR) and vice versa. This rule will be effective from 1 April 2023.

New tax rates

0-3 Lakh – Zero
3-6 lakhs – 5%
6-9 lakhs- 10%
9-12 Lakh – 15%
12-15 lakhs – 20%
Above 15 Lakh – 30%