From April 1, 2023 several changes related to personal finance would kick in.
1. For tax payers earning up to Rs 7 lakh in annual income, it would not be subject to tax
2. Under the new tax regime with effect from April 1, if a taxpayer has annual income of Rs 7 lakh s/he pays no tax. But if s/he has income of Rs 7,00,100 s/he pays tax of 25,010
3. The number of tax slabs has been decreased to five from the previous six
4. A standard deduction of Rs 50,000 under the new system, which forbids assessees from claiming exemptions or deductions on their investments
5. For high net worth persons with income over Rs 2 crore, surcharge to be reduced from 37% to 25% for those with high salaries
6. From April 1, investments in debt mutual funds will be taxed as short-term capital gains, stripping investors of the long-term tax benefits that made such investments popular
7. From April 1, Physical gold conversion into Electronic Gold Receipt (EGR) vice versa by a SEBI-registered Vault Manager will not attract any capital gain tax
8. Maturities of life insurance policies with an annual premium of Rs 5 lakh and above taken after 1 April 2023 will be taxed. Ulips are not included in this though
9. From April 1, the would impose a 30 percent tax on net winnings from online gaming and also do away with the existing threshold limit of Rs 10,000
10. From April 1, Govt will impose a limit of Rs 10 crore for deduction on long-term capital gain tax for reinvestment in residential properties under Section 54 and 54F of the Income Tax Act