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India's new fiscal year 2023-24 began on April 1st, while several adjustments were announced in the Union Budget 2023, presented on February 1st.
Here are the ten most important direct tax proposals thus far:
The new income tax regime will be established as the default regime. Taxpayers, however, will still be allowed to profit from the previous tax structure (old regime).
The rebate threshold has been extended up to 7 lakhs (8,525 USD).
Personal income tax brackets have been reduced from six to five and the tax exemption ceiling has been increased to 3 lakhs (3,654 USD).
Standard deduction. Salaried individuals will receive a basic deduction of 50,000 INR (609 USD) and pensioners of 15,000 INR (183 USD).
Rate of surcharge. The highest surcharge has decreased from 37% to 25% for income exceeding 2 crores (243,332 USD).
Leave encashment. The tax exemption ceiling for non-government paid employees on leave encashment on retirement has been raised from 3 lakhs to 25 lakhs.
Policies on life insurance will be taxed. Revenues accrued from Life Insurance Policies will be taxable if the total yearly premium exceeds 5 lakhs (6,090 USD).
Gifts received by a Resident Not-Ordinarily Resident (RNOR) will be now taxed for values above 50,000 INR.
Profits from capital investments will be taxed as short-term gains regardless of holding length.
Issuance of shares. Angel Tax will now be applied to Non-Resident entities.
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