New Income Tax Rules 2023: From 1 April 2023 i.e. after the beginning of the new financial year, a large number of income tax rules are going to change. These income tax rules have been changed based on the Union Budget 2023 proposals which have been recently passed by the Parliament through the Finance Bill 20223. As per this Finance Bill, income from policies on annual premium taxed 5 lakh will now be taxable from 1 April 2023 i.e. from tomorrow. Hence, it is not the case that the proceeds of all life insurance policies will be taxable. Only that life insurance is available whose annual premium is higher 5 lakh will be taxable from the next financial year.
Union Finance Minister Nirmala Sitharaman had proposed to levy a tax on life income insurance policy with an annual premium of more than 5 lakhs quoting the Union Budget 2023 being presented, “It is proposed to provide that where the aggregate of premiums for life insurance policies (other than ULIPs) issued on or after the 1st day of April, 2023 is above 5 lakh, income from only those policies with total premium 5 lakh will be exempted. This will not affect the tax exemption provided to the amount received on the death of the life assured. It will also not affect insurance policies issued till March 31, 2023.”
Union Budget 2022 was imposed by Finance Minister Nirmala Sitharaman Income Tax on Income from ULIP (Unit Linked Insurance Plan) at Annual Premium 2.5 lakhs. So, from 1st April 2023, the income on annualized premium from ULIP Income from 2.50 lakhs and above Insurance on annual premium 5 lakh will be income tax free.
Changes in some more income tax rules from April 1
From tomorrow, the new income tax slab will become a by-default tax system. earnings persons. Now, if an earning individual wants to go with the old tax regime, he needs to opt for the old tax regime.
Standard deduction of 50,000 has been passed for both the old and the new income tax regime.
– Tax free income for salaried individuals has now gone up 7 lakh per annum from 1st April 2023.
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