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<\/figure>\n<\/div>\n\n\nA standard deduction of Rs. 50,000 for salaried people and a deduction from family pensions of up to Rs. 15,000 have also been proposed by the Department. The top surcharge rate has been lowered from 37% to 25%, bringing the top personal income tax rate down to 39%. The cap for non-government salaried employees’ leave encashment upon retirement has been raised to Rs. 25 lakh.<\/p>\n\n\n\n
As a default, the new tax system will be in place, but citizens will still have the option to choose the old one. Micro enterprises and certain professionals will also have enhanced limits for availing the benefit of presumptive taxation. The Department has also proposed that deduction for expenditure incurred on payments made to MSMEs should be allowed only when the payment is made.<\/p>\n\n\n\n
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- New co-operatives<\/strong> that commence manufacturing activities by 31.03.2024<\/strong> will be eligible for a lower tax rate of 15%, as is currently available to new manufacturing companies. <\/strong><\/li>\n\n\n\n
- In addition, sugar co-operatives<\/strong> will have the opportunity to claim payments made to sugarcane farmers for the period before the assessment year 2016-17 as expenditure, providing them with a relief of almost Rs. 10,000 crores.<\/strong><\/li>\n<\/ul>\n\n\n\n
The carry forward of losses on a change in shareholding increased from seven years of incorporation to ten years will be advantageous to startups. The incorporation deadline for start-ups to receive income tax incentives has been extended to 31.03.24. The maximum amount that can be deducted from capital gains on an investment in a residential home under sections 54 and 54F is Rs. 10 crores.<\/p>\n\n\n\n
In addition, the government is proposing a change to the income tax<\/mark> <\/a>exemption for insurance policies with high values. <\/p>\n\n\n\n
Income from policies: <\/strong>Only the revenue from insurance with an aggregate premium of up to Rs. 5 lakh will be tax-exempt as of April 1, 2023.<\/p>\n\n\n\n
Taxability of online gaming: <\/strong>The minimum threshold for TDS will be removed, and the taxability of online gaming winnings will be clarified. TDS will be required on net winnings at the withdrawal time or the financial year’s end.\u00a0TDS rate EPF:<\/strong> The <\/strong>TDS rate for the taxable portion of EPF withdrawals in non-PAN cases will be reduced from 30% to 20%.<\/p>\n\n\n\n
- In addition, sugar co-operatives<\/strong> will have the opportunity to claim payments made to sugarcane farmers for the period before the assessment year 2016-17 as expenditure, providing them with a relief of almost Rs. 10,000 crores.<\/strong><\/li>\n<\/ul>\n\n\n\n