The Indian government has introduced several new financial rules, including new tax slabs and savings scheme benefits, effective from April 1, 2023. Here are some of the major changes that individuals and businesses need to be aware of:
New Tax Slabs: The government has introduced new tax slabs for individuals and HUFs (Hindu Undivided Families) with taxable income up to Rs. 15 lakh. The new tax rates will be as follows:
- For taxable income up to Rs. 2.5 lakh, there will be no tax
- For taxable income between Rs. 2.5 lakh and Rs. 5 lakh, the tax rate will be 5%
- For taxable income between Rs. 5 lakhs and Rs. 10 lakhs, the tax rate will be 10%
- For taxable income between Rs. 10 lakh and Rs. 15 lakhs, the tax rate will be 15%
For taxable income above Rs. 15 lakh, the existing tax slabs and rates will continue to apply. These new tax slabs will provide relief to the middle class and promote higher disposable income.
Savings Scheme Benefits: The government has announced several benefits for individuals investing in various savings schemes, including:
- The maximum limit for investment in Public Provident Fund (PPF) has been increased from Rs. 1.5 lakh to Rs. 2.5 lakh per annum.
- The interest rate on National Savings Certificates (NSCs) has been increased from 6.8% to 7.5% per annum.
- The deduction limit under Section 80C of the Income Tax Act has been increased from Rs. 1.5 lakh to Rs. 2 lakh per annum.
These savings scheme benefits will encourage individuals to save more and help in financial planning for the future.
Other Financial Rules:
- The limit for cash withdrawal at non-home branches of banks has been increased from Rs. 50,000 to Rs. 1 lakh per day.
- The government has reduced the minimum contribution for National Pension Scheme (NPS) from Rs. 6,000 per annum to Rs. 3,000 per annum.
- The limit for contactless card transactions has been increased from Rs. 5,000 to Rs. 10,000 per transaction.
These changes in financial rules will benefit individuals and businesses by providing them with more flexibility and opportunities to save and invest. It is important to understand these changes and take advantage of them for better financial planning and management.
