look news india
Income Tax Update: There is a lot of discussion on social media regarding the new tax system. Now the Finance Ministry has given clear information regarding the tax system. For the last few days, many misleading things were being seen on social media regarding the new tax system. Along with this, it was being told that there is going to be a change in the tax system from April 1, 2024, but the Finance Ministry has made it clear by tweeting that there is going to be no change in the tax system.
Finance Ministry gave information
The ministry has said that no new changes have been made from April 1, 2024. The revised new income tax system was implemented for individuals in the financial year starting April 1, 2023, under which the tax rates are “significantly lower”. However, it does not have the benefit of various exemptions and deductions (except the standard deduction of Rs 50,000 from salary and Rs 15,000 from family pension) like the old system.
The ministry has said that the new tax regime is the 'default' tax system. However, taxpayers can choose the new or old tax system as per their convenience. The option to opt out of the new tax system is available till filing of return for the year 2024-25. ,
How much is the tax?
In the new tax system, there will be no tax on annual salary of Rs 0-3 lakh. After this, 5% tax is imposed on income of Rs 3 to 6 lakh, 10% on income of Rs 6 to 9 lakh, 15% on income of Rs 9 to 12 lakh, 20% on income of Rs 12 to 15 lakh. 30% on income above Rs 15 lakh. Apart from this, 4 percent is taken as health and education cess.
If you do not choose tax arrangement then…
Let us tell you that if a taxpayer forgets to select his tax system or does not select the tax system, then his new tax system will be automatically implemented. After this your tax will be automatically deducted as per the new tax system.
Tax slab in old tax system-
0 to ₹2.5 lakh = 0
₹2.5 lakh to ₹5 lakh = 5%
₹5 lakh to ₹10 lakh = 20%
Above ₹10 lakh = 30%