Also Read: Everything To Know About the New Income Tax Regime 2023

What did Sitharaman announce?

The minister announced changes to tax slabs under the new regime, adding, however, that taxpayers will still be able to select the regime under which they want to file their returns. In case no choice was made, the new tax regime will be default, she said.

Also Read: Confused about old and new income tax regime? Here’s a dedicated calculator

What to know about the new tax rules?

Speaking to HT’s sister publication Mint, Abhishek Soni, co-founder and CEO, Tax2Win, explained what citizens must know about the new tax rules. “As we usher in the new financial year, and bid farewell to FY 2022-23, we can expect some significant changes coming into effect from April 1, 2023. These changes will involve the introduction of new rules or reforms to existing ones, as announced by the finance minister, in the Budget 2023,” said Soni.

Here are a few things one must know about the new rules, as per Abhishek Soni:

(1.) The increase of basic exemption limit (from ₹2.5 lakh to ₹3 lakh) is to make the new regime more ‘attractive.’ The highest rate of 30% will be levied on annual salary of more than ₹15 lakh.

(2.) The surcharge rate has been reduced from 37% to 25% for those earning more than ₹5 crore annually. Under the new regime, however, this 25% rate is for individuals with yearly income exceeding ₹2 crore.

(3.) Individuals and Hindu Undivided Families (HUFs) can choose between the regimes in every FY (if there is no business income). For those with business income, on the other hand, there will be only one chance to return to the old regime, if they opted for the new one.

(4.) Section 87A rebate is available under both. Also, for those confused which one to opt for, the Income Tax Department has launched a ‘calculator.’

(5.) Under a proposal to introduce a standard deduction in the new regime (no changes made for the old one), people will benefit from a standard deduction of ₹50,000.

NEW DELHI: The crucial twoday meeting of the EPFO’s Central Board of Trustees, which is to declare the EPF rate of interest on the retirement corpus for 2022-23, will begin in the national capital on Monday.
In March 2022, the government had declared 8. 1% EPF rate for 2021-22, the lowest level since 1977-78. It is expected that the interest levels will be maintained at par.
The declara tion of interest comes at a time when government had said interest applicable for 2021-22 is still being credited and was a bout 98% complete till March 6. The delay in EPF interest cred its was attributed to a software upgrade necessitated by the introduction of TDS on annual EPF contributions of over Rs 2. 5 lakh.
Apart from the declaration of interest rates, the meeting assumes significance since the pension fund manager will present a status note on the Supreme Court’s November 4, 2022 judgment regarding pension on higher wages, an issue that has led to considerable angst among exsisting and prospective pensioners as a result of procedural complexities in the application process.
In its meeting of the Pension Impleme ntation and EDLI Committee (PIEC) on March 15, EPFO had decided to issue a set of FAQs to “demystify” the apex court judgment and its implications on pensioners. However, des pite the extension of last date of application to May 3, the EPFO has still not issued the detailed explainer, nor clarified the method of deposit or computation of pension. Other agenda items include, among other things, a presentation of the retirement fund manager’s revised budget estimates for 2022-23 and budget estimates for 2023-24 for EPFO and the schemes fu nded by it. This comes in the backdrop of PIEC’s expression of concern in the March 15meeting over the labour ministry’s submission to a parliamentary panel that its budget estimates for 2023-24 were prepared without factoring in the implications of the apex court’s judgment, also as this may impact the EPFO rate of interest for 2022-23.
A report of the standing committee on labour tabled in Parliament this month said the ministry told the House panel that the implications of the judgment had not been factored in to the BE 2023-24 allocation.
In a subsequent Action Ta ken Report by the labour ministry, it has said the fund manager has seen a “significant drop” in EPFO’s acturial deficit as a result of the improvement of the quality of data with respect to the members of EPS-95.

Israel PM Netanyahu fires defense minister who dissented on court plan

Israeli Prime Minister Benjamin Netanyahu on Sunday fired Defence Minister Yoav Galant a day after he broke ranks, citing security concerns in calling for a pause to the government’s controversial judicial reforms, reported AFP.