The income tax regulations have undergone numerous revisions this year. it will have a direct impact on many Indians. Additionally, new tax slabs have been put into effect, which the administration claims will help a lot of taxpayers. Notably, unless taxpayers choose the previous regime when submitting an Income Tax Return (ITR), the new tax system is now the default tax regime. Nirmala Sitharaman, the finance minister, made the announcements in this year’s budget speech. This budget also included numerous regulation changes, the impact of which can be seen in the income tax return. Tell us what changes Nirmala Sitharaman, the finance minister, unveiled in the Budget 2023.
Tax rules – Travel Allowance for Leave
Up to a certain point, LTA can be relaxed for non-government workers. This maximum was Rs 3 lakh beginning in 2002, but it is now Rs 25 lakh.
Mutual Funds do not receive LTCG tax benefits
Mutual fund investments that are debt-related will be taxed as short-term capital gains. Investors would no longer be able to profit from the long-term taxes advantages that had made such investments so attractive.
Debentures with a market value (MLD)
Market Linked Debentures (MLD) investments are considered short-term capital assets. Grandfathering of older investments will come to an end, and the mutual fund sector will also be affected.
Term life insurance
Beginning on April 1, 2023, income from life insurance premiums exceeding a yearly premium of Rs. 5 lakh would be subject to taxation. Finance Minister Nirmala Sitharaman stated in her presentation of the Budget 2023 that ULIPs will not be subject to the new IT law.
Read more: PM Kisan Nidhi major update, government made this decision for 15th installment
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