Read Time:1 Minute, 20 Second
New Delhi, March 31, 2024: The Centre today clarified that under the new tax regime, the tax rates are significantly lower.
It has come to the notice that “misleading” information related to new tax regime is being spread on some social media platforms, the Union Finance Ministry sources said.
It is therefore clarified that the new regime under section 115BAC (1A) was introduced in the Finance Act 2023. 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, they said.
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, the Centre clarified.
Although, new tax regime is the default tax regime, tax payers can choose the tax regime that they think is beneficial to them. The option for opting out from the new tax regime is available till filing of return for the AY 2024-25, the Ministry said.
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.
There is no new change which is coming in from 01.04.2024, it said.
