The revised income tax slab for the new tax regime will be applicable with no tax on people earning up to Rs 7 lakh.
The highest tax rate of 30% will be levied on income above Rs 15 lakh.
The basic exemption limit will increase to Rs 3 lakh from Rs 2.5 lakh to make the new tax regime more attractive. Standard deduction of Rs 50,000 will be introduced.
The surcharge rate will be reduced to 25% from 37% under the new tax regime for individuals earning more than Rs 5 crore. The new tax regime will be the default tax regime for salaried individuals who have not declared their choice.
The Income Tax Department has launched an 'Income tax calculator' to assist you with which tax regime will be better.
Only gains up to Rs 10 crore would be exempt under the provisions of sections 54 and 54F of the Income Tax Act. Capital gain above Rs 10 crore, will now be taxed at a flat rate of 20 per cent (with indexation). Capital gains from Market Linked Debentures will be treated as short-term capital gains and taxable at applicable slab rates
Capital gain on the sale of the property will be higher as double deductions claimed on interest paid under section 24 by the taxpayer will be eliminated.
Conversion of the physical form of gold into Electronic Gold Receipt (EGR) and vice versa will not attract any capital gain tax.
The winnings from online games will attract flat 30 per cent tax
The new tax regime is touted to be a simpler, less-cumbersome-paperwork alternative to the old tax regime.
The Centre has not made any changes in the old tax regime. It will continue to have three income tax slabs in FY 2023-24 as before.