look news india
New income tax system: The Central Government has clarified today (Monday) that no change has been made in the income tax rules from April 1. It was being posted on social media that some changes will be made in the income tax slab from April 1. But now the Finance Ministry has rejected these claims. While posting on the social media platform 'X', the Finance Ministry wrote, 'It has been observed that misleading information regarding the new tax slab is being spread on some social media platforms. We would like to clarify that no new changes have been made in the income tax slab from April 1.
The Finance Ministry clarified on social media platform X that, 'The new tax regime was introduced in the Finance Bill 2023 under Section 115BAC(1A) of the Income Tax Act. The old tax system already exists. The new tax regime is applicable as the default tax regime for ordinary taxpayers other than companies and firms from FY 2023-24 and assessment year 2024-25. The tax rate is lower in the new tax system. However, many exemptions and deductions (except standard deduction of Rs 50,000 from salary and family pension of Rs 15,000) are not applicable. Whereas exemptions and deductions can be claimed under the old tax system.
Employers have the option to choose the tax regime
The new tax regime is the default tax regime. However, taxpayers can choose any tax regime, old or new, depending on their benefit. The option to opt out of the new tax regime is available till the filing of return for assessment year 2024-25. Eligible individuals without business will have the option to choose the tax regime for each financial year. This means they can opt for the new tax regime in one financial year and the old tax regime in the next financial year.