New Delhi: The Union Finance Ministry on Monday clarified that there is no new income tax regime introduced from April 1, but rather a new tax regime under section 115BAC(1A) introduced in the Finance Act 2023. The clarification came amid reports by some social media platforms that claimed taxes are being hiked.
The new tax regime is applicable to individuals other than companies and firms and is applicable as a default from the Financial Year 2023-24 and the Assessment Year AY 2024-25. Taxpayers can choose the tax regime they find beneficial, and opting out is available until the filing of returns for the AY 2024-25.
The Indian government has introduced a new tax regime for individuals, not just companies and firms, starting from the Financial Year 2023-24 and corresponding Assessment Year AY 2024-25.
According to the Finance Ministry, the new 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 new tax regime is the default tax regime. However, taxpayers 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.
ALSO READ: Government announces 12% price hike on essential medicines
FIRST Business Portal addressing the potential of business capability of North East Region.
