The Finance Ministry on Monday issued a statement reaffirming that there will be no alterations to the new tax regime for the financial year 2024-25, which commences on April 1. The government in a 6-point note explained in response to misleading social media posts circulating on various platforms.
According to the finance ministry, the new tax regime remains the default option for taxpayers. However, individuals retain the flexibility to opt out until the filing of returns for the assessment year 2024-25. Taxpayers are encouraged to select the regime they deem most advantageous to their financial circumstances.
It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that:
👉 There is no new change which is coming in from 01.04.2024.
👉 The new tax regime under section 115BAC(1A) was… pic.twitter.com/DtKGkK0D5H
— Ministry of Finance (@FinMinIndia) March 31, 2024
The statement further highlights that eligible individuals without business income have the liberty to choose between the new and old tax regimes for each financial year. This allows for a personalised approach based on individual preferences and financial strategies.
Effective from the assessment year 2024-25, the new regime automatically applies to individuals, excluding companies and firms. Under this regime, tax rates are notably reduced, although various exemptions and deductions, with the exception of standard deductions, are not applicable as in the old regime.
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The Central Board of Direct Taxes (CBDT) has taken note of the dissemination of factually incorrect information regarding the new tax regime on certain social media platforms and urges the public to verify information from credible sources.
New Tax Regime V/s Old Tax Regime
New Regime 115BAC (1A) introduced for FY 2023-24
Existing old Regime
0-3 lacs
0%
0-2.5 lacs
0%
3-6 lacs
5%
2.5 -5 lacs
5%
6-9 lacs
10%
5-10 lacs
20%
9-12 lacs
15%
Above 10 lacs
30%
12-15 lacs
20%
Above 15 lacs
30%
