New Delhi: The finance ministry has rebutted claims concerning the brand new earnings tax regime that has been unfold on the social media, creating confusions amongst tax payers.
In an explanatory tweet, finance ministry has mentioned, “It has come to note that deceptive info associated to new tax regime is being unfold on some social media platforms”.
The finance ministry has clarified that There isn’t any new change which is coming in from 01.04.2024. The brand new tax regime underneath part 115BAC(1A) was launched within the Finance Act 2023, as in comparison with the prevailing outdated regime (with out exemptions).
It added that New tax regime is relevant for individuals aside from corporations and companies, is relevant as a default regime from the Monetary Yr 2023-24 and the Evaluation Yr similar to that is AY 2024-25.
The ministry mentioned that new tax regime is the default tax regime, nonetheless, tax payers can select the tax regime (outdated or new) that they suppose is helpful to them.
“Below the brand new tax regime, the tax charges are considerably decrease, although the advantage of varied exemptions and deductions (aside from customary deduction of Rs. 50,000 from wage and Rs. 15,000 from household pension) shouldn’t be out there, as within the outdated regime.
It has come to note that deceptive info associated to new tax regime is being unfold on some social media platforms. It’s subsequently clarified that:
_ There isn’t any new change which is coming in from 01.04.2024.
_ The brand new tax regime underneath part 115BAC(1A) was_ pic.twitter.com/DtKGkK0D5H
— Ministry of Finance (@FinMinIndia) March 31, 2024
“Possibility for opting out from the brand new tax regime is out there until submitting of return for the AY 2024-25. Eligible individuals with none enterprise earnings may have the choice to decide on the regime for every monetary yr. So, they’ll select new tax regime in a single monetary yr and outdated tax regime in one other yr and vice versa,” it added.
