‘No new change’: Government issues clarification on old and new tax regime

‘No new change’: Government issues clarification on old and new tax regime

Mangalore Today News Network

New Delhi, April 01, 2024: The government clarified that “no new change” has come into effect from April 1 with regard to Income Tax rules.

The Ministry of Finance has issued a statement to counter misleading information related to the new tax regime on social media platforms.

 

“This 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,” said the statement.

It noted that under the new tax regime, the tax rates are “significantly lower”, but added that the benefit of various exemptions and deductions – other than the standard deduction of Rs 50,000 from salary and Rs 15,000 from family pension – is not available like in the old tax regime.

“Although, new tax regime is the default tax regime, tax payers can choose the tax regime that they think is beneficial to them,” read the finance ministry’s statement.

It may be noted that the 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. So, they can choose new tax regime in one financial year and old tax regime in another year and vice versa,” the ministry added.

Courtesy: India Today