New income tax regime to debt funds: What changes kick in from April 1 – Times of India

NEW DELHI: Several regulations are expected to roll in from the first day of financial year 2023-24, even as some of the special dispensations allowed during the pandemic come to an end.
TOI lists some key rules that will impact individuals and businesses…
For individuals
New Tax Regime
The new income tax regime will become the default option. Individuals will have the option to choose the older regime.
Home Loan Rates
Special home loan rates offered by SBI, HDFC will come to an end, leading to higher interest rates.
Sr Citizen FD
SBI’s ‘We Care’ deposit scheme offering 50 basis points more for senior citizens over the standard rates will end. HDFC Bank & IDBI Bank schemes will cease as well.
Costlier Cars
New vehicles have to comply with the phase 2 of BS6 emission norms and this is likely to lead to a hike in prices among auto majors.
Debt Mutal Funds
Debt mutual funds with less than 35% investment in equity shares will be taxed according to slab rate — indexation benefits end.
Senior Citizen Savings Scheme
Maximum deposit limit for senior citizen savings scheme will be increased to Rs 30 lakh from Rs 15 lakh.
Tax Rebate
Rebate under section 87A will be hiked to Rs 25,000 for taxable income up to Rs 7 lakh. So if you opt for new regime, you will pay zero tax if income is under Rs 7 lakh.
Leave Encashment
Limit for tax exemption on leave encashment on retirement of non-govt staff increases to Rs 25 lakh from Rs 3 lakh.
Insurance Investment
Insurance policies (other than ULIPs) with annual premiums exceeding Rs 5 lakh will become taxable.
Capital Gain Exemption
For HNIs availing high-value capital gain exemption by reinvesting in luxury apartments, tax deduction will be capped at Rs 10 crore.

For businesses

Online Gaming
Online gaming cos must deduct tax at source on net winnings of users (money earned net of entry fees) at a rate of 30% on every winning.
Audit Trail
Accounting software used by cos to maintain books of accounts must have mandatory audit trail facility with features to create edit logs of each change made.
Insurance Commissions
Life, general and health insurance cos will get the flexibility to pay commissions to agents according to board-approved policies within the overall expenses of management ceiling.
Home Loan Capital
Home loan providers need to provide more capital on their portfolio. Earlier, RBI had rationalised risk weight to give a fillip to the sector.