The government clarified on Monday that there would be no new changes to income tax rules coming into effect from April 1st
The Ministry of Finance has released a detailed statement to debunk misinformation circulating on social media platforms regarding the new tax regime.
“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,” stated in the statement.
The statement highlighted that under the new tax regime, tax rates are “significantly lower.” However, it pointed out that various exemptions and deductions, except for the standard deduction of Rs 50,000 from salary and Rs 15,000 from family pension, are not applicable, unlike in the old tax regime.
“Although the new tax regime is the default tax regime, taxpayers can choose the tax regime that they think is beneficial to them,” read the finance ministry’s statement.
It’s worth noting that the option to opt out of the new tax regime remains available until the filing of the return for the assessment year 2024-25.
“The Ministry added, ‘Eligible persons without any business income will have the option to choose the regime for each financial year. Therefore, they can opt for the new tax regime in one financial year and the old tax regime in another year, and vice versa.”