New income tax rules to be implemented from April 1; Here's all you need to know about changes

April 1 marks the start of a new financial year after which Union Budget proposals on income tax get implemented from this day. These revisions were announced by Finance Minister Nirmala Sitharaman in her Budget speech this year in February. Here's a glimpse of some of the revisions in tax rules that will be implemented from April 1.

There will be a default implementation of the new tax regime which is expected to streamline tax filing procedures and boost more participation in the new regime. However, taxpayers will still get the choice to stick to the old tax regime if it is more helpful to them.

The tax slabs will be accordingly: Income from 3 lakh and 6 lakh will be taxed at 5%, 6 lakh to 9 lakh will be taxed at 10%, 9 lakh to 12 lakh will be taxed at 15%,12 lakh to 15 lakh will be taxed at 20% and Rs 15 lakh and above will be taxed at 30%. 

The standard deduction of Rs 50,000, which was earlier applied to the old tax regime, has now been implemented in the new tax regime. This will further reduce taxable income under the new regime.

The maximum rate of surcharge of 37% on income above 5 crore has been lowered to 25%. Maturity proceeds from life insurance policies, which are issued on or after April 1, 2023 where the total premium is over Rs 5 lakh, will be taxed.

The leave encashment tax exemption limit for non-government employees was Rs 3 lakh but it has now been elevated to Rs 25 lakh.