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Four key income tax changes from FY22-23

Four key income tax changes from FY22-23

Income tax rules keep changing and taxpayers need to be aware of them to be on the right side of law. For income tax purposes, a financial year (FY) begins in April and ends on March 31 of the following year. Currently, we are in the financial year 2022-23 and there have been certain amendments in tax rules that will be applicable from this FY onwards. Let’s see some of them:


NPS contribution: For the central government employees, the government was already contributing 14% of employee’s wages towards employee’s NPS account. Starting this FY, state government employees will receive a 14% contribution into their NPS account from their respective state governments. Deduction for employer contribution to NPS has been increased from 10% to 14% for state government employees on par with central government employees. However, it has not been extended to non-govt employees.

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