1. Tax Provisions From April 1, 2023: Several regulations are expected to roll in from 1st April, 2023. We list some of the key changes that will impact individuals and businesses.
2. For INDIVIDUALS New Tax Regime: The new income tax regime will become the default option. Individuals will have the option to choose the older regime.
3. Home Loan Rates: Special home loan rates offered by SBI, HDFC will come to an end, leading to higher interest rates.
4. Senior Citizen FD: SBI’s ‘We Care’ deposit scheme offering 50 basis points more for senior citizens over the standard rates will end. HDFC Bank & IDBI Bank schemes will cease as well.
2. For INDIVIDUALS New Tax Regime: The new income tax regime will become the default option. Individuals will have the option to choose the older regime.
3. Home Loan Rates: Special home loan rates offered by SBI, HDFC will come to an end, leading to higher interest rates.
4. Senior Citizen FD: SBI’s ‘We Care’ deposit scheme offering 50 basis points more for senior citizens over the standard rates will end. HDFC Bank & IDBI Bank schemes will cease as well.
5. Costlier Cars: New Vehicles have to comply with the phase 2 of BS6 emission norms and this is likely to lead to a hike in prices among auto majors.
6. Debt MFs: Debt mutual funds with less than 35% investment in equity shares will be taxed according to slab rate – indexation benefits end.
7. Senior Citizen Savings Scheme: Maximum deposit limit for senior citizen saving scheme will be increased to Rs 30 Lakh from Rs 15 lakh.
8. Tax Rebate: Rebate under section 87A will be hiked to Rs 25000 for taxable income up to Rs 7 lakh. So if you opt for the new regime, you will pay zero tax if income is under Rs 7 lakh.
9. Leave Encashment: Limits for tax exemption on leave encashment on retirement of non- govt. employees increase to Rs 25 lakh from Rs 3 lakh.
10. Insurance Investment: Insurance policies (other than ULIP’s) with annual premiums exceeding Rs 5 lakh will become taxable on maturity.
11. Capital Gain Exemption: For HNIs availing high-value capital gain exemption by reinvesting in luxury apartments, tax deduction will be capped at Rs 10 crore.
12. For BUSINESS Online Gaming: Online gaming cos must deduct tax at source on net winnings of users at a rate of 30% on every winning.
13. Audit Trail: Accounting software used by companies to maintain books of accounts must have mandatory audit trail facility with features to create edit logs of each change made.
14. Insurance Commissions: Life, general and health insurance cos will get the flexibility to pay commissions to agents according to board- approved policies within the overall expenses of management ceiling.
15. Home Loan Capital: Home loan providers need to provide more capital on their portfolio, Earlier, RBI had rationalized risk weight to give a fillip to the sector.
6. Debt MFs: Debt mutual funds with less than 35% investment in equity shares will be taxed according to slab rate – indexation benefits end.
7. Senior Citizen Savings Scheme: Maximum deposit limit for senior citizen saving scheme will be increased to Rs 30 Lakh from Rs 15 lakh.
8. Tax Rebate: Rebate under section 87A will be hiked to Rs 25000 for taxable income up to Rs 7 lakh. So if you opt for the new regime, you will pay zero tax if income is under Rs 7 lakh.
9. Leave Encashment: Limits for tax exemption on leave encashment on retirement of non- govt. employees increase to Rs 25 lakh from Rs 3 lakh.
10. Insurance Investment: Insurance policies (other than ULIP’s) with annual premiums exceeding Rs 5 lakh will become taxable on maturity.
11. Capital Gain Exemption: For HNIs availing high-value capital gain exemption by reinvesting in luxury apartments, tax deduction will be capped at Rs 10 crore.
12. For BUSINESS Online Gaming: Online gaming cos must deduct tax at source on net winnings of users at a rate of 30% on every winning.
13. Audit Trail: Accounting software used by companies to maintain books of accounts must have mandatory audit trail facility with features to create edit logs of each change made.
14. Insurance Commissions: Life, general and health insurance cos will get the flexibility to pay commissions to agents according to board- approved policies within the overall expenses of management ceiling.
15. Home Loan Capital: Home loan providers need to provide more capital on their portfolio, Earlier, RBI had rationalized risk weight to give a fillip to the sector.
No comments:
Post a Comment