Money rules: Major changes that will affect your wallet from April 1

With the new financial year 2023-24 beginning today, people need to revisit their strategies as several changes including the new tax regime will come into effect from April 1, 2023. The changes are likely to have a direct or indirect impact as far as your personal finances and investments are concerned.

So be it the income tax slab or the new hallmarking norms, there are several rules which come into effect from today.

Here’s quick look at the changes:

New Tax Slab

The Centre had announced the new tax regime during the Budget 2023 and it comes into effect for the financial year from today. The government had proposed to increase the income tax rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime. There is no tax up to Rs 7 lakh under the new tax regime. The new tax regime will become the default option.

Hallmarking of Gold Jewellery

The sale and purchase of gold jewellery will also follow new rules. As per previous announcement, only gold that is hallmarked with a six-digit alphanumeric code HUID -Hallmark Unique Identification - will be permitted.

Investment limit hiked in PO MIS

The maximum investment limit for Post Office Monthly Income Scheme (POMIS) has been hiked to Rs 9 lakh from Rs 4.5 lakh and this also comes into effect from today.

NPS Rule

Uploading of certain documents has been made mandatory by the Pension Fund Regulatory and Development Authority (PFRDA) to withdraw NPS funds from April 1. These include NPS exit/withdrawal forms, proof of identity and address as specified in the withdrawal form, bank account proof and copy of PRAN (Permanent Retirement Account Number) card.

Other Major Changes

Leave encashment limit on retirement hiked from Rs 3 lakh to Rs 25 lakh

Tax on EPFO contributions higher than Rs 2.5 lakh

TDS to apply for online gaming prizes

X-Ray machine import to get 15% costlier

Cigarettes, paan masala, & other tobacco products to cost more