New Income Tax Rules Effective April 1: Major Changes & Benefits for Taxpayers
The new financial year starts on Monday, April 1st. Due to this, some important changes have been implemented in the income tax rules.
The main reason behind making these changes is to provide relief to the taxpayers as well as simplify the tax system.
What is the main change:
First of all, changes have been made to the new tax system. Let us tell you that this will now be the default tax system. However taxpayers will still have the opportunity to choose the old tax system.
Also, changes have been made in the tax slabs, which will provide tax relief to the middle class. If your annual income is up to Rs 12 lakh, then no income tax will exist.
With a standard deduction of Rs 75,000 for salaried taxpayers, there will now be no tax up to Rs 12.75 lakh.
Changes have also been made to TDS rules. TDS rates have been changed for some transactions.
Not only this, increased tax relief for senior citizens on FD and a mandatory rule of linking PAN-Aadhaar has been made.
Along with this, relaxation has been given in TDS rules on sending money abroad. Let us inform you that changes like a reduction in credit card rewards are also included in this.
Impact on Salary
Let us tell you, the tax liability of some taxpayers will be reduced due to the new tax slab, which will increase their net income.
Taxpayers whose income is between Rs 7 lakh and Rs 12 lakh will benefit the most.
Now by increasing the income tax exemption limit from Rs 7 lakh to Rs 12 lakh, one crore people will not have to pay any tax.
Disclaimer:
The information provided here is for general awareness and informational purposes only. Readers are advised to consult a professional tax advisor or refer to official government sources before making any financial decisions.
Also read: https://investcly.com/zomato-swiggy-shares-decline/