new tax regime: Ministry of Finance debunks falsehoods: New tax regime clarified, no modifications on horizon

The assertion, posted on X, addressed misconceptions surrounding modifications purportedly taking impact from April 1, 2024.

Ministry of Finance posted, “Ministry of Finance posted on X, “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 a new change which is coming in from 01.04.2024…..”

https://twitter.com/finminindia/standing/1774504330499879372?s=48&t=CSE0glwGSDCXRHUtG7cLjw

The Ministry categorically said that there are not any new alterations slated for implementation on April 1, 2024.

As an alternative, it underscored that the brand new tax regime underneath part 115BAC(1A) was launched within the Finance Act 2023.This regime, as in comparison with the prevailing one, presents completely different tax brackets and provisions.The brand new tax regime, denoted underneath part 115BAC(1A), is relevant for people aside from firms and corporations.

It serves because the default regime ranging from the monetary yr 2023-24, with the corresponding evaluation yr being AY 2024-25.

Underneath the brand new tax regime, tax charges are notably decrease than these within the current regime.

Nonetheless, it is vital to notice that varied exemptions and deductions, excluding the usual deduction of Rs. 50,000 from wage and Rs. 15,000 from household pension, will not be accessible.

Taxpayers retain the autonomy to pick out the tax regime they deem most advantageous to their monetary scenario.

They’ll go for both the previous or new tax regime. This flexibility permits people to make knowledgeable selections primarily based on their particular circumstances.

Importantly, people have the choice to decide out from the brand new tax regime till the submitting of returns for the evaluation yr 2024-25.

Moreover, eligible individuals with none enterprise revenue can select the regime for every monetary yr, alternating between the brand new and previous regimes as per their discretion.

The clarification goals to dispel misinformation and supply readability to taxpayers relating to the prevailing tax rules.

The Ministry of Finance emphasised the significance of correct info dissemination, notably in issues regarding taxation insurance policies that immediately impression residents’ monetary affairs.

The Ministry urges people to depend on official bulletins and sources for correct info relating to tax reforms and regulatory modifications.

It reiterated its dedication to making sure transparency and accessibility in issues regarding fiscal insurance policies, thereby fostering knowledgeable decision-making amongst taxpayers.