New Change To Income Tax Rules, Slabs From 01 April 2024? Finance Ministry Rebuts Claims

New Delhi: The finance ministry has rebutted claims regarding the new income tax regime that has been spread on the social media, creating confusions among tax payers.

In an explanatory tweet, finance ministry has said, "It has come to notice that misleading information related to new tax regime is being spread on some social media platforms".

The finance ministry has clarified that There is no new change which is coming in from 01.04.2024. The new tax regime under section 115BAC(1A) was introduced in the Finance Act 2023, as compared to the existing old regime (without exemptions).

It added that New tax regime is applicable for persons other than companies and firms, is applicable as a default regime from the Financial Year 2023-24 and the Assessment Year corresponding to this is AY 2024-25. 

The ministry said that new tax regime is the default tax regime, however, tax payers can choose the tax regime (old or new) that they think is beneficial to them. 

"Under the new tax regime, the tax rates are significantly lower, though the benefit of various exemptions and deductions (other than standard deduction of Rs. 50,000 from salary and Rs. 15,000 from family pension) is not available, as in the old regime. 

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

"Option for opting out from the new tax regime is available till filing of return for the AY 2024-25. Eligible persons without any business income will have the option to choose the regime for each financial year. So, they can choose new tax regime in one financial year and old tax regime in another year and vice versa," it added.