Income tax planning trends for this year and outlook for 2024

livemint.com:

₹50,000 were brought under the tax ambit. Money received from life insurance policies with premiums exceeding ₹5 lakhs per year will be taxed as income from other sources. This applies to both individual policies and combined policies with premiums exceeding ₹5 lakhs across multiple policies held by the same person.

However, money received upon the death of the policyholder remains exempt from tax. Income earned by news agencies established in India solely for news collection and distribution will be taxable starting from the financial year 2023-2024. This means news agencies will need to file income tax returns and pay taxes on their profits.

The tax holiday benefit for Special Economic Zone (SEZ) units will continue, but with stricter conditions. To avail of the tax holiday, SEZ units must bring their export earnings into India in convertible foreign exchange within 6 months of the financial year-end or obtain an extension for this deadline from the Reserve Bank of India. File their tax returns within the prescribed due date.

The new tax regime, introduced a few years ago, has been made the default option for all taxpayers, including individuals, Hindu Undivided Families (HUFs), and Association of Persons (AOPs). While offering lower tax rates compared to the old regime, it comes with the drawback of forgoing certain deductions and exemptions. However, the government has made efforts to make the new tax regime more attractive.

Revised Tax Slabs:The new regime saw revised slab rates with lower tax rates and a higher basic exemption limit of ₹3 lakh. Higher tax rebate limit: The tax rebate limit has been increased to Rs. 7 lakhs under the new regime, offering a complete reprieve from tax liabilities.