No change in income tax slabs from April 1, 2024

The Finance Ministry clarified on X (formerly known as Twitter) on March 31 that no new changes to the tax regime will take effect from April 1, 2024

Depending on their preferences and financial circumstances, taxpayers can select either the old or new tax regimes. Moreover, there is an option to opt out of the new regime until the filing of their return for the Assessment Year 2024-25, the Finance Ministry stated.

Finance Ministry's statement on old and new tax regime:

Misinformation on the new tax regime has been spreading on certain social media channels. To set the record straight, the ministry clarified several key points:

No changes from April 1, 2024: There are no upcoming changes to the tax regime starting from today.

Introduction of the new tax regime: The new tax regime under section 115BAC(1A) was introduced in the Finance Act 2023, as compared to the existing old regime (without exemptions).

Applicability: The new regime is intended for individuals excluding companies and partnerships. It has been the default option since the Financial Year (FY) 2023-24, corresponding to AY 2024-25.

Tax rates and exemptions: While the new regime offers significantly lower tax rates, it does not permit various exemptions and deductions that are available under the old regime, except for a standard deduction of Rs 50,000 from salary and Rs 15,000 from family pensions.

The choice between old and new tax regimes: Taxpayers are at liberty to choose the regime--old or new--that they find more beneficial. They can switch between regimes annually, provided they do not have business income.

www.business-standard.com dt. 02.04.2024