The Finance Ministry has issued a clarification amidst the dissemination of deceptive info on social media platforms concerning the brand new tax regime. It emphasizes that there are not any new modifications taking impact from April 1, 2024. Taxpayers have the flexibleness to decide on between the old and new tax regimes primarily based on their preferences and monetary circumstances, with the choice to decide out of the brand new regime till submitting their return for Assessment Year 2024-25. Eligible people with out business revenue can alternate between the old and new regimes for every monetary yr.
On the social media platform, the Finance Ministry posted: “It has come to note that deceptive info associated to the brand new revenue tax regime is being unfold on some social media platforms. It is subsequently clarified that:
1)There is not any new change which is coming in from 01.04.2024.
2)The new tax regime beneath part 115BAC(1A) was launched within the Finance Act 2023, as in comparison with the present old regime (with out exemptions) (SEE TABLE BELOW)
3)The new tax regime is relevant for individuals aside from corporations and corporations, is relevant as a default regime from the Financial Year 2023-24 and the Assessment Year similar to that is AY 2024-25.
4)Under the brand new tax regime, the tax charges are considerably decrease, although the advantage of numerous exemptions and deductions (aside from the usual deduction of Rs. 50,000 from wage and Rs. 15,000 from household pension) isn’t available, as within the old regime.
5)The new tax regime is the default tax regime, nevertheless, taxpayers can select the tax regime (old or new) that they suppose is useful to them.
6)The possibility for opting out from the brand new tax regime is available until the submitting of return for the AY 2024-25. Eligible individuals with none business revenue can 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 an old tax regime in one other yr and vice versa.
Income tax slabs as per the brand new tax regime are as follows
Income from ₹0 to ₹3,00,000: 0% tax charge
Income from ₹3,00,001 to ₹6,00,000: 5%
Income from ₹6,00,001 to ₹9,00,000: 10%
Income from ₹9,00,001 to ₹12,00,000: 15%
Income from ₹12,00,001 to ₹15,00,001: 20%
Income above ₹15,00,000: 30%
1) Income as much as ₹2.5 is exempt from taxation beneath the old tax regime.
2) Income between ₹2.5 to ₹5 lakh is taxed on the charge of 5 per cent beneath the old tax regime.
3) Personal revenue from ₹5 lakh to ₹10 lakh is taxed at a charge of 20 per cent within the old regime
4) Under the old regime private revenue above ₹10 lakh is taxed at a charge of 30 per cent.
Unlock a world of Benefits! From insightful newsletters to real-time inventory monitoring, breaking information and a personalised newsfeed – it is all right here, only a click on away! Login Now!
