Finance Ministry refutes any change in new income tax regime

The Finance Ministry has clarified that there isn’t a new change in the income tax regime that’s coming in from April 1, 2024, as is being reported by some social media platforms.

“It has come to note that deceptive data associated to new tax regime is being unfold on some social media platforms. It is due to this fact clarified that: There isn’t any new change which is coming in from April 1, 2024,” the Finance Ministry mentioned on Sunday in a submit on X.

The new tax regime underneath Section 115BAC(1A) was launched in the Finance Act 2023, as in comparison with the present previous regime with out exemptions.

The new tax regime is relevant for individuals apart from firms and corporations, as a default regime from the Financial Year 2023-24 and the Assessment Year comparable to that is AY 2024-25, the Finance Ministry mentioned.

Under the new tax regime, the tax charges are considerably decrease, although the advantage of numerous exemptions and deductions (apart from normal deduction of Rs 50,000 from wage and Rs 15,000 from household pension) will not be out there, as in the previous regime, the Finance Ministry added.

The new tax regime is the default tax regime, nonetheless, taxpayers can select the tax regime (previous or new) that they suppose is useful to them. Option for opting out from the new tax regime is out there until submitting of return for the AY 2024-25.

Eligible individuals with out any enterprise income could have the choice to decide on the regime for every monetary yr. Therefore, they’ll select the new tax regime in one monetary yr and the previous tax regime in one other yr and vice-versa, the Finance Ministry mentioned in an announcement.

(With inputs from IANS)