What You Need to Know Today According to Finance Ministry 6-Point Note on New Tax Regime

Finance Ministry 6-Point Note on New Tax Regime: There won't be any new changes taking effect from April 1, 2024, despite misleading information spreading on social media.

Until the end of the Assessment Year 2024-25, taxpayers can opt out of the new regime.

Every year, individuals without business income can switch between the old and new regimes.

Nirmala Sitharaman, the Union Finance Minister, announced no tax changes on February 1, 2024.

A number of social media platforms are spreading false information about the new tax regime, according to the finance ministry.

As stated in the statement, this regime will apply to people other than companies and firms from 2023-24, and the assessment year that corresponds to that is 2024-25.

A new tax regime was posted on platform X by the Finance Ministry.

It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that:

???? There is no new change which is coming in from 01.04.2024.

???? The new tax regime under section 115BAC(1A) was… pic.twitter.com/DtKGkK0D5H

— Ministry of Finance (@FinMinIndia) March 31, 2024

Six tax tips were shared by the ministry for the financial year.

Despite misleading information, there are no new changes today.

• Section 115BAC(1A) of the Finance Act 2023 replaced the old regime with no exemptions.
• In the Financial Year 2023-24, with the corresponding Assessment Year 2024-25, tax reform will begin.
• Except for standard deductions such as 50,000 rupees from salary and 15,000 rupees from a family pension, the tax rates are lower.
• The new tax regime is the default, but taxpayers can choose the old regime if it works better for them. The new tax regime is the default, but taxpayers can choose the old regime if it works better for them.
• Individuals without business income can alternate between the old and new tax regimes until the end of the 2024-25 fiscal year.

Income tax slabs under the new regime are as follows:

• Income from ₹0 to ₹3,00,000: 0% tax rate
• Income from ₹3,00,001 to ₹6,00,000: 5%
• Income from ₹6,00,001 to ₹9,00,000: 10%
• Income from ₹9,00,001 to ₹12,00,000: 15%
• Income from ₹12,00,001 to ₹15,00,001: 20%
• Income above ₹15,00,000: 30%

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