New Delhi: The Ministry of Finance has clarified there are no new changes to the new tax regime implemented in the 2023 Finance Act. This comes amidst misinformation circulating on social media platforms.
In a social media post on X, formerly Twitter, the ministry issued a clarification, stating. “There is no new change which is coming in from April 1, 2024. The new tax regime under section 115BAC(1A) was introduced in the Finance Act 2023, as compared to the existing old regime (without exemptions)”
The ministry said, “New tax regime is applicable for persons other than companies and firms, is applicable as a default regime from the Financial Year 2023-24 and the Assessment Year corresponding to this is AY 2024-25. Under the new tax regime, the tax rates are significantly lower, though the benefit of various exemptions and deductions (other than standard deduction of Rs. 50,000 from salary and Rs. 15,000 from family pension) is not available, as in the old regime.”
It said that the new tax regime is the default tax regime, however, tax payers can choose the tax regime (old or new) that they think is beneficial to them. Option for opting out from the new tax regime is available till filing of return for the AY 2024-25, it said and added that 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
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