Tax Slabs
One of the major changes that will impact the common man’s pocket is the new tax slabs. From April 1, the income tax slabs will be revised. The new slabs will provide relief to the middle-class taxpayers. The tax rates have been reduced for different income brackets, resulting in lower tax liability for many individuals.
Standard Deductions
Another change that will affect the common man is the revision of standard deductions. The standard deduction is an amount that can be deducted from the total income before calculating the tax liability. From April 1, the standard deduction has been increased, which means individuals can now claim a higher deduction and reduce their taxable income.
Insurance Policies
There are also some changes in the tax rules related to insurance policies. From April 1, the tax benefits on health insurance premiums have been increased. Individuals can now claim a higher deduction on the premiums paid for themselves, their spouse, children, and parents. This will encourage more people to opt for health insurance and ensure better financial protection for themselves and their families.
In addition to health insurance, there are also changes in the tax rules for life insurance policies. From April 1, the maturity proceeds of life insurance policies will be tax-free up to a certain limit. This will provide relief to policyholders and encourage them to invest in life insurance for long-term financial security.
Capital Gains
Changes in the tax rules related to capital gains will also impact the common man. From April 1, the holding period for long-term capital gains on immovable property has been reduced. This means that if you sell a property after holding it for a certain period, you will be eligible for long-term capital gains tax benefits. This will incentivize individuals to invest in real estate for the long term and promote stability in the property market.
Additionally, there are changes in the tax rules for capital gains on the sale of shares and mutual funds. From April 1, the holding period for long-term capital gains on equity shares and equity-oriented mutual funds has been increased. This means that if you sell these investments after holding them for a certain period, you will be eligible for long-term capital gains tax benefits. This will encourage individuals to invest in the stock market and mutual funds for the long term, promoting economic growth.
Conclusion
The new tax rules that will be implemented from April 1 will have a significant impact on the common man’s pocket. The changes in tax slabs, standard deductions, insurance policies, and capital gains will provide relief to taxpayers and incentivize investments in various sectors. It is important for individuals to be aware of these changes and plan their finances accordingly to make the most of the new tax rules.
