IANS | 01 Apr, 2024
The Finance Ministry has clarified that there is no new change in
the income tax regime that is coming in from April 1, 2024, as is being
reported by some social media platforms.
"It has come to notice
that misleading information related to new tax regime is being spread on
some social media platforms. It is therefore clarified that: There is
no new change which is coming in from April 1, 2024," the Finance
Ministry said on Sunday in a post on X.
The new tax regime under
Section 115BAC(1A) was introduced in the Finance Act 2023, as compared
to the existing old regime without exemptions.
The new tax regime
is applicable for persons other than companies and firms, as a default
regime from the Financial Year 2023-24 and the Assessment Year
corresponding to this is AY 2024-25, the Finance Ministry said.
Under
the new tax regime, the tax rates are significantly lower, though the
benefit of various exemptions and deductions (other than standard
deduction of Rs 50,000 from salary and Rs 15,000 from family pension) is
not available, as in the old regime, the Finance Ministry added.
The
new tax regime is the default tax regime, however, taxpayers can choose
the tax regime (old or new) that they think is beneficial to them.
Option for opting out from the new tax regime is available till filing of return for the AY 2024-25.
Eligible
persons without any business income will have the option to choose the
regime for each financial year. Therefore, they can choose the new tax
regime in one financial year and the old tax regime in another year and
vice-versa, the Finance Ministry said in a statement.