No New Tax Changes Effective From April 1, 2024 | CBDT Issues Clarification on New Tax Regime

Press Release, dated 31-03-2024

In order to provide clarity on the misleading information related to the new tax regime, a press release was released by the Ministry of Finance. It is clarified that the new regime under section 115BAC(1A) was introduced in the Finance Act 2023, and no new change has come in since 01.04.2024.

This regime applies to persons other than companies and firms as a default regime from the financial year 2023-24 (Assessment Year 2024-25). Under the new tax regime, the tax rates are significantly lower. However, the benefit of various exemptions and deductions (other than the standard deduction of Rs. 50,000 from salary and Rs. 15,000 from family pension) is not available, as in the old regime.

Although the new tax regime is the default tax regime, taxpayers can choose the tax regime they think benefits them. The option for opting out from the new tax regime is available till the filing of the return for the AY 2024-25. Eligible persons without any business income will have the option to choose the regime for each financial year.

Therefore, taxpayers can choose a new tax regime in one financial year and an old one in another year and vice versa.

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