As we move into the New financial year 2023-24 it’s important to stay informed about the latest income tax rules and regulations. Knowing the key changes, deadlines, and strategies for maximizing tax savings can help you stay ahead of the game and avoid common mistakes.

In this blog article, we’ll go through the most important income tax rules and regulations for the new fiscal year, including changes in slab rates, deductions, and exemptions, as well as important deadlines to note.

It also offers advice on how to maximize tax savings and prevent typical blunders while submitting income tax returns. You’ll have a better knowledge of how to navigate the income tax system and take advantage of the options available to you in the new fiscal year 2023-24 by the end of this essay.

Important Income Tax Rule and Regulation Amendments for Fiscal Year 2023-24

The new fiscal year 2023-24 introduces numerous significant changes in income tax rules and regulations that taxpayers should be aware of. The following are the major changes:

• • New Income Tax Slab Rates: In the India budget for 2023, the government announced new income tax slab rates. Individuals now have four tax slabs, each with a different tax rate. The new tax rates are as follows:

1. Up to Rs. 3,00,000: Nil
2. Rs. 3.00,000 to Rs. 6,00,000: 5% on income which exceeds Rs. 3,00,000 
3. Rs. 6,00,000 to Rs. 900,000: Rs. 15,000 + 10% on income more than Rs. 6,00,000
4. Rs. 9,00,000 to Rs. 12,00,000: Rs. 45,000 + 15% on income more than Rs. 9,00,000
5. Rs. 12,00,000 to Rs. 1500,000: Rs. 90,000 + 20% on income more than Rs. 12,00,000
6. Above Rs. 15,00,000: Rs. 150,000 + 30% on income more than Rs. 15,00,000

Changes In Deductions And Exemptions:

The government has made some changes to the deductions and exemptions available to taxpayers as per the Income tax new regime. The standard deduction for salaried individuals has been increased from Rs. 50,000 to Rs. 75,000. The deduction for interest paid on housing loans for self-occupied dwellings, on the other hand, has been limited to Rs. 1.5 lakh each year.

• • New Tax-Cutting Options: The government has announced some new tax-cutting choices for taxpayers. The establishment of a new section 80TTA, which allows for a deduction of up to Rs. 10,000 on interest earned from savings bank accounts. Moreover, taxpayers can now deduct Section 80C investments in Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts from their taxes (REITs).

• • Updates to the Criteria for Advance Taxable Income: For professionals and business owners, the government raised the advance tax payment threshold from Rs. 10,000 to Rs. 25,000. This implies those with tax obligations under Rs. 25,000 can settle them when they file their returns.

Crucial Dates To Keep In Mind

In addition to changes in income tax rules and regulations, taxpayers should be aware of numerous crucial dates for the fiscal year 2023-24. Here are the important dates to remember:

• • July 31, 2023: Deadline for filing Income Tax Returns (ITR) for the financial year 2022-23.

This is the most important deadline to remember, as failure to file ITR by this date may result in penalty charges and additional interest on the outstanding amount. Taxpayers can file their returns online through the Income Tax Department’s e-filing website.

• • September 30, 2023: Deadline for filing revised ITRs.

In case taxpayers notice any errors or omissions in their original ITR, they can file revised ITRs by this date. However, revised returns can only be filed if the original return was filed on or before the due date.

• • December 31, 2023: Deadline for linking PAN with Aadhaar.

The government has made it mandatory to link PAN (Permanent Account Number) with Aadhaar. Taxpayers who fail to link their PAN with their Aadhaar by this date may face penalties and their PAN may become invalid.

• • March 31, 2024: Deadline for investment in tax-saving instruments.

This is the last date to invest in tax-saving instruments like the Public Provident Fund (PPF), National Savings Certificate (NSC), and Equity Linked Saving Scheme (ELSS) to claim deductions under Section 80C of the Income Tax Act.

• • March 31, 2024: Deadline for payment of advance tax.

Taxpayers who are liable to pay advance tax need to make their final payment by this date. Failure to pay advance tax may result in interest charges and penalty fees.

Taxpayers need to be aware of the important deadlines for filing ITR, linking PAN with Aadhaar, investing in tax-saving instruments, and paying advance tax. Missing these deadlines may result in penalties and additional charges. 

Therefore, it is advisable to stay updated with the latest income tax rules and regulations and plan ahead to avoid any last-minute rush or errors. They should also check for schemes like Senior Citizen Savings Scheme, and Post Office Monthly Income Scheme.

Common Mistakes to Avoid

While filing income tax returns, taxpayers may make some common mistakes that can result in penalties or even legal consequences. The following are some of the most frequent mistakes that taxpayers should avoid:

• • Information that is incorrect or lacking: One of the most frequent errors ITR filers make is giving inaccurate or lacking information. The Income Tax Department may conduct an investigation as a result, which can lead to fines and legal action.

• • Failure to report all sources of income: Taxpayers are required to report all sources of income, including wages, rental income, and interest earned on bank accounts. Failure to disclose all sources of income could have negative legal repercussions including penalties.

• • Verifying Statement: Taxpayers must examine their tax credit statements, also known as Form 26AS, to confirm that the taxes deducted from their income are accurately credited to their accounts. 

Conclusion

Lastly, there are numerous changes to income tax laws and regulations coming into effect in the fiscal year 2023–2024 that taxpayers need to be aware of. Taxpayers need to keep in mind the key updates, important dates, and common mistakes to prevent in order to ensure a smooth and hassle-free tax filing procedure. Additionally, using digital tools like CANNEARBYME can help people connect with licensed tax advisors and get professional help filing their income tax returns. With the right information and assistance, taxpayers can maximize their tax savings by taking advantage of income tax rules and regulations.