Income Tax Rule Changes on 1 April: Simplifying Taxation System for Taxpayers - All you need to know

The government has introduced a new tax regime that allows taxpayers to choose between the existing tax regime and a new tax regime. The new regime offers lower tax rates, but taxpayers will not be able to claim certain deductions and exemptions. The government has lowered the tax rates for individual taxpayers who opt for the new tax regime. The standard deduction for salaried taxpayers has been increased from Rs. 50,000 to Rs. 75,000. The government has increased the TDS rates on certain payments. For example, the TDS rate on cash withdrawals above Rs. 1 crore in a year has been increased from 2% to 5%. The deadline for filing income tax returns has been extended to December 31, 2023, for taxpayers who are required to get their accounts audited. The government has changed the definition of 'resident' for tax purposes. Under the new rules, an individual will be considered a resident of India if he/she stays in India for 182 days or more in a financial year, compared to the earlier threshold of 120 days. The government has introduced a new tax on long-term capital gains on equities and equity-oriented mutual funds. Under the new rules, long-term capital gains on equities and equity-oriented mutual funds exceeding Rs. 1 lakh in a financial year will be taxed at 10%.