NEW DELHI: Even as some of the extraordinary dispensations permitted during the pandemic come to an end, certain restrictions are anticipated to take effect from January 1st of financial year 2023–24.
The TOI includes a few significant regulations that apply to both people and companies…
individual people
New Tax SystemThe new income tax system will be the standard choice. People will have the opportunity to select the previous system.
Mortgage Rates
SBI and HDFC’s special home loan rates will terminate, resulting in increased interest rates.
FD Senior Citizen
The SBI “We Care” deposit programme, which gave senior citizens 50 basis points over the usual rates, will come to an end. The programmes from HDFC Bank and IDBI Bank will also end.
Pricier Vehicles
Phase 2 of BS6 emission requirements compliance for new vehicles will probably result in pricing increases from automakers.
debt hedge funds
Indexation benefits for debt mutual funds that invest less than 35% in equity shares will stop, and they will be taxed at the slab rate.
Older Adult Savings Program
The Senior Citizen Savings Scheme’s maximum deposit limit would rise from Rs. 15 lakh to Rs. 30 lakh.
Tax Refund
For taxable income up to Rs 7 lakh, the rebate under section 87A will increase to Rs 25,000. So, if you choose the new regime, you will pay no taxes if your income is less than Rs 7 lakh.
Leave Cashing
The non-government employee leave encashment exemption threshold has increased from Rs 3 lakh to Rs 25 lakh.
Investing in Insurance
All insurance contracts (except from ULIPs) with yearly premiums that exceed Rs 5 lakh will be subject to taxation.
Exemption from Capital Gains
Tax deductions for HNIs who reinvest in luxury apartments to take advantage of high-value capital gain exemption are restricted at Rs 10 crore.
for companies
Digital gaming
Online gambling companies are required to deduct tax at source at a rate of 30% on players’ net winnings (amounts gained after deducting entry fees).
An audit trail
The accounting software that corporations use to maintain their books of accounts must have an audit trail function that allows for the creation of edit logs for any change made.
Commissions for Insurance
The option to pay commissions to agents in accordance with board-approved regulations while staying within the management’s overall spending ceiling will be granted to life, general, and health insurance companies.
Mortgage Capital
More capital needs to be added to the portfolios of mortgage lenders. Prior to now, the RBI had rationalised risk weight to boost the industry.
