Budget 2023 has announced many changes under the Income-tax Act, 1961. These changes have brought forward the tax planning exercise from the end of the financial year to the start of the financial year i.e., in April. Here's why you need to carefully evaluate the two income tax regimes now and how to go about it.

An individual can save income tax on the donations made. Section 80G of the Income-tax Act, 1961 allows individuals to save tax on the donations made to the specified institutions. Thus deduction can be claimed only if an individual opts for old tax regime for a particular financial year. Read on to know how this section can help individuals to save income tax.

Every rupee earned by an NRI in India is subject to TDS. The TDS is applicable on every payment earned or accrued. These include rent payments, interest earned from bank accounts, fixed deposits, capital gains from mutual funds etc. Further, NRIs cannot submit Form 15G/Form 15H to lower or avoid TDS. Here's what they can do to lower or avoid TDS on income earned in India.

The income tax department has notified the cost inflation index (CII) number for the current financial year. The CII number is used to arrive at the inflation-adjusted price of an asset. The capital gains that are chargeable to income tax are lowered using the indexation benefit. From FY 2023-24, the indexation benefit has been removed from debt mutual funds.

Deloitte India's Tapati Ghose has said that the attractiveness of the new tax regime may increase the number of employees who opt-in when filing their tax returns for FY23 in India. The regime has been structured with the basic exemption limit raised to INR300,000 and the number of tax slabs reduced to five. Benefits also include increased rebates and a standard deduction. Taxpayers can choose between the new tax regime or the old one on a year-by-year basis for each fiscal year.

Sudhir Kaushik of Taxspanner.com tells readers how they can optimise their tax by rejigging their income and investments.

The income tax dept has issued a circular on April 5, 2023, clarifying how employers can deduct taxes on the salary payments made to an employee. Budget 2023 has made the new tax regime as default tax regime for the financial year 2023-24. An individual wanting to opt for old tax regime will specifically required to opt for the same.

The government launched the Mahila Samman Savings Certificate, 2023. This program is specifically meant for female investors, and on March 31, 2023, the government published a gazette notice announcing the launch of a new small savings program.

Here are some of the steps that can help cut your tax in the new financial year.