Apr 1, 2023, 01:47 AM IST
1. New income tax regime to be default regime
2. Tax rebate cap raised to ₹7 lakh
3. Employees' standard deduction of Rs 50,000 under the previous tax system remained unchanged.
4. New tax rates in income slabs are: Yearly salary up to ₹3 lakh: Nil ₹3 lakh- ₹6 lakh: 5% ₹6 lakh to ₹9 lakh: 10% ₹9 lakh to ₹12 lakh: 15% ₹12 lakh to Rs15 lakh: 20% Above ₹15 lakh: 30%
5. For non-government employees, leave encashment is exempt up to Rs 25 lakhs.
6. Investments in debt mutual funds will be taxed as short-term capital gains.
7. Market Linked Debentures (MLDs) investments made after April 1 will be considered short-term capital assets.
8. Taxes will apply to any life insurance premiums beyond the annual cap of 5 lakh rupees.
9. Deposit limit for senior citizen savings scheme will be increased to ₹30 lakhs from ₹15 lakhs.
10. Either way, there is no capital gains tax if physical gold is converted to an electronic gold receipt (EGR).