New Tax Rules 2024: Impact on Your Pocket from April 1 | Key Changes Revealed
New Tax Rules 2024: Impact on Your Pocket from April 1 | Key Changes Revealed.
New Tax Rules: Discover the 5 crucial tax rules coming into effect from April 1, 2024. Understand how these changes in tax slab, insurance policies, and standard deductions will affect your finances.
Optimize your tax strategy now! These 5 new tax rules are going to be implemented from April 1, know what will the effect be in your pocket.
The new financial year i.e. 2024-25 will start from April 1. This day is very important from the point of view of personal finance, because many tax-related changes come into effect from this day.
Many announcements made in the budget are also implemented from April 1 itself.
This time too, some new rules related to tax slab, insurance policy, and standard deduction are going to be implemented from April 1.
Let us know in detail what these tax changes are and what effect they will have on your pocket.
New Tax Rules: The new tax regime will be the default.
If you have not chosen between the old tax regime and the new tax regime, then you will automatically move to the new tax regime from April 1.
In the new expense framework, you won’t need to pay any assessment on profit up to Rs 7 lakh. But, if you want to save tax by investing, the old tax regime may be better for you.
The standard deduction is now in the new tax regime.
Earlier, a standard deduction of Rs 50 thousand was applicable only in the old tax regime. Now it has been included in the new tax regime.
Under standard deduction, tax exemption is available on Rs 50 thousand, which means that after standard deduction, you will not have to pay any tax on earnings up to Rs 7.5 lakh.
Certain individuals benefit such a huge amount from this exclusion that no expense is imposed on them with the discount under Segment 87A of the Personal Duty Act.
Under Section 87A, individuals whose total income is less than Rs 5 lakh are exempt up to Rs 12,500.
Tax benefits for privately employed people here.
On the off chance that you work in the confidential area and take less leave, you will get more duty exclusion on the cash you get instead of leave.
Prior, on the off chance that a non-government representative took cash from the organization in return for his excess leave, then just the sum of up to Rs 3 lakh was tax-exempt.
Be that as it may, presently this breaking point has been expanded to Rs 25 lakh.
Those acquiring more than Rs 5 crore will save more duty.
From April 1, those with yearly pay of more than Rs 5 crore will likewise get immense advantages. The public authority has diminished the extra charge on pay above Rs 5 crore by 12%.
Prior it was 37%, which will become 25% from April 1. Notwithstanding, this advantage will be accessible just to those individuals who pick the new assessment framework.
Charge on development pay of insurance contract moreover.
Presently duty should be paid on the development pay got from extra security strategy. This was declared by Money Priest Nirmala Sitharaman.
Anything that arrangements are given on or after April 1, 2023, will go under the domain of this standard.
In any case, this assessment should be paid simply by those individuals whose all-out premium is more than Rs 5 lakh.
