New tax system implemented from April 1, many important changes in the new financial year

The new financial year 2023-24 has started from Saturday. With the change in the financial year, many such decisions will be implemented, which will affect your life. Come, let’s take a look at these decisions…

1. The new tax regime came into effect from April 1. Under the new tax regime, if a taxpayer’s annual income is seven lakh rupees, then he will not have to pay any tax. However, there has been no change in the old tax regime with exemptions such as investment and housing allowance. For the first time, the benefit of standard deduction of Rs 50,000 has also been proposed under the new tax regime.

The Finance Minister has proposed to make the new tax regime i.e. the tax regime with no exemptions as ‘default’. This means that if you have not exercised your option in the income tax return, you will automatically move to the new tax regime. Apart from this, the tax rate on royalty and fees for technical services will be increased from 10 per cent to 20 per cent.

1. In the case of an insurance policy with an annual premium of more than five lakh rupees, the limit of tax exemption on the amount received will end. Under this, the maturity amount of all life insurance policies (other than unit linked insurance policies or ULIPs) issued after April 1, 2023, whose annual premium is more than five lakh rupees, will be taxed.

2. A new small savings scheme for women ‘Mahila Samman Bachat Patra’ will be launched. In this, up to two lakh rupees can be invested in the name of a woman or girl at one time. Under this scheme, interest will be given at a fixed rate of 7.5 percent. Along with this, the option of partial withdrawal will also be available.

3. The deposit limit under the Senior Citizen Savings Scheme will be increased from Rs.15 lakh to Rs.30 lakh. On the other hand, under the monthly income scheme, the deposit limit will be increased to Rs 9 lakh.

4. From April 1, short-term capital gains tax will be levied on mutual funds investing in bonds or fixed income products. Till now investors got long term tax benefits on it due to which it was a popular investment option. At present, investors investing in mutual funds linked to bonds or fixed income products pay income tax on capital gains for three years. After three years, these funds pay 20 per cent without the effect of inflation or 10 per cent with the effect of inflation.

5. The Bureau of Indian Standards (BIS) is mandating a six-digit ‘alphanumeric’ HUID (Hallmark Unique Identification) for hallmarked gold jewelery from April 1. However, the government has allowed around 16,000 jewelers to sell old hallmarked gold jewelery already ‘declared’ till June. But this exemption will be applicable only on jewelery made before July 2021.

6. Vehicle companies like Maruti Suzuki, Tata Motors are increasing the prices of their various models after the implementation of strict emission norms from April 1.

7. The National Stock Exchange (NSE) has decided to roll back the six per cent increase in transaction charges in the cash equity and futures and options segments with effect from April 1. The additional fee came into effect on January 1, 2021.

8. Securities Transaction Tax (STT) on option contracts will increase from 0.05 per cent to 0.0625 per cent and on futures contracts from 0.01 per cent to 0.0125 per cent.

9. Credit card payments for foreign travel will be brought under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India (RBI). Its purpose is to ensure that such expenses come under the purview of Tax Collection at Source (TCS).

10. A revised credit guarantee scheme for the country’s micro and small scale industries will come into effect from April 1. In this, the annual guarantee fee for loans up to Rs 1 crore is being reduced from a maximum of two per cent to 0.37 per cent. This will reduce the overall cost of credit for small businesses. The guarantee limit has been increased from Rs 2 crore to Rs 5 crore.

12. The new Foreign Trade Policy (FTP) will also come into effect from April 1. It aims to increase the country’s exports to $2 trillion by 2030, make the Indian rupee a global currency, and promote e-commerce exports. FTP 2023 will also give a boost to e-commerce exports and it is expected to grow to $200-300 billion by 2030. In addition, the value limit for exports through courier services is being raised from Rs 5 lakh per consignment to Rs 10 lakh.