There is not any new change which is coming in from 01.04.2024.(Representative Image)
The new tax regime is the default tax regime, nevertheless, taxpayers can select the tax regime (outdated or new) that they assume is helpful to them.
In a bid to clear widespread doubts amongst taxpayers, the finance ministry on Sunday clarified that starting April 1, 2024 (FY 24-25), there can be no new change within the ongoing tax regimes. It’s price mentioning that within the interim funds for 2024-25, Finance Minister Nirmala Sitharaman didn’t counsel any alterations within the tax construction, whether or not direct or oblique. Consequently, the revenue tax slabs for each the brand new and outdated regimes stay unchanged from these introduced within the Union Budget for 2023-24.
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However, amid stories of confusion, the ministry issued an in depth clarification.
“It has come to notice that misleading information related to the new tax regime is being spread on some social media platforms,” the ministry stated.
It is due to this fact clarified that:
- There is not any new change which is coming in from 01.04.2024.
- The new tax regime underneath part 115BAC(1A) was launched within the Finance Act 2023, as in comparison with the present outdated regime (with out exemptions)
- The new tax regime is relevant for individuals aside from firms and companies, is relevant as a default regime from the monetary yr 2023-24 and the evaluation yr akin to that is AY 2024-25.
- Under the brand new tax regime, the tax charges are considerably decrease, although the good thing about numerous exemptions and deductions (aside from commonplace deduction of Rs. 50,000 from wage and Rs. 15,000 from household pension) will not be accessible, as within the outdated regime.
- The new tax regime is the default tax regime, nevertheless, taxpayers can select the tax regime (outdated or new) that they assume is helpful to them.
- Option for opting out from the brand new tax regime is offered until submitting of return for the AY 2024-25. Eligible individuals with none enterprise revenue could have the choice to decide on the regime for every monetary yr. So, they’ll select a brand new tax regime in a single monetary yr and outdated tax regime in one other yr and vice versa.
