New rules for the income tax will go into effect in April 2023 and will affect how common taxpayers pay taxes in a variety of ways. The Union Budget 2023, which was presented in February, made these changes a proposal.
The new tax system will allow for fewer TDS deductions for salaried individuals. If they choose the new tax system, taxpayers with taxable incomes below Rs 7 lakh will not be subject to TDS. Section 87A of the Income Tax Act provides an additional exemption.
According to section 193 of the Income Tax Act, listed debentures in dematerialized form will not be subject to TDS deductions; however, all other payments will be subject to a 10% TDS deduction.
Under the new Income Tax Act’s section 115 BBJ, players who win money in online games must now pay a 30% tax. TDS will be used to deduct this tax.
Beginning with the upcoming fiscal year, the benefits provided by Sections 54 and 54F of the Income Tax Act will be reduced. Under these sections, only gains exceeding Rs 10 crore will be exempt, and gains exceeding this amount will be taxed at a rate of 20% with the benefit of indexation.
The profit from the sale of a property will be subject to a higher capital gains tax starting on April 1, 2023. Capital gains resulting from the transfer, redemption, or maturity of market-linked debentures will now be subject to short-term capital gains tax, and interest claimed under Section 24 will not be included in the cost of buying or repairing the asset.
As of April 2023, physical gold that is converted into an Electronic Gold Receipt or the other way around will not be subject to capital gains tax as long as the process is completed by a SEBI-registered vault manager.
