Finance Ministry clarifies: No changes in new tax regime, issues 6-point note

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Finance Ministry clarifies: No changes in new tax regime, issues 6-point note


Image Source : INDIA TV Finance Ministry clarifies: No changes in new tax regime, issues 6-point note

Amidst speculations, the Finance Ministry has clarified that there will likely be no new changes in the tax regime from April 1, 2024, because the interim funds’s revenue tax proposals take impact. In a press release posted on X (previously Twitter), the ministry addressed confusion surrounding the new tax regime, identified for its decrease charges however fewer exemptions and deductions.

Interim funds highlights by Nirmala Sitharaman

During the presentation of the interim funds on February 1, 2024, Union Finance Minister Nirmala Sitharaman assured that there can be no alterations to taxation, proposing to take care of present direct and oblique tax charges.

Key factors from Finance Ministry

  1. Responding to misinformation circulating on social media platforms, the Finance Ministry shared six essential factors for the monetary 12 months concerning taxes:

  2. No new change: There will likely be no new change as of April 1, 2024.

  3. Introduction of new tax regime: The new tax regime beneath Section 115BAC(1A) was launched in the Finance Act 2023, differing from the prevailing previous regime.

  4. Applicability: The new tax regime is relevant for people apart from corporations and companies because the default regime from the Financial Year 2023–24, with the corresponding Assessment Year being AY 2024–25.

  5. Lower tax charges: While the new tax regime gives considerably decrease tax charges, it doesn’t present the advantage of varied exemptions and deductions accessible in the previous regime.

  6. Option for taxpayers: Taxpayers can select between the previous and new tax regimes primarily based on what they discover useful.

  7. Opt-out possibility: Taxpayers have the choice to decide out of the new tax regime till submitting their returns for AY 2024–25. Eligible people with out enterprise revenue can choose the regime for every monetary 12 months as per their choice.

Interim funds tax slabs

As per the interim funds, the revenue tax slabs stay unchanged for the new monetary 12 months (FY2024–25). Income starting from Rs. zero to Rs. 3,00,000 will likely be exempt from tax, with subsequent slabs taxed at 5%, 10%, 15%, 20%, and 30%, respectively.

Also learn | Income tax division cracks down on PAN fraud for false HRA claims

 

 

 





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