No New Income Tax Slab From April 1, 2024 – Ministry of Finance Issues Clarification

New Delhi, 1st April 2024: In response to misleading information circulating on social media platforms regarding the new tax regime, the Ministry of Finance has issued a clarification to set the record straight.

The ministry categorically stated that there are no new changes coming into effect from April 1, 2024. The new tax regime under section 115BAC(1A) was introduced in the Finance Act 2023, with applicability from the Financial Year 2023-24 onwards. This means that for the Assessment Year 2024-25, taxpayers will be subject to the provisions of the new regime.

Under the new tax regime, applicable to individuals other than companies and firms, tax rates are considerably lower compared to the existing regime. However, the benefit of various exemptions and deductions, except for the standard deduction of Rs. 50,000 from salary and Rs. 15,000 from family pension, is not available.

Importantly, the new tax regime is the default option for taxpayers. Nevertheless, individuals have the flexibility to choose between the old and new tax regimes based on their financial circumstances. This choice can be exercised until the filing of returns for the Assessment Year 2024-25.

Furthermore, eligible individuals without any business income have the liberty to switch between the regimes on a yearly basis. This means they can opt for the new tax regime in one financial year and revert to the old regime in the subsequent year, and vice versa.

The Ministry of Finance emphasized the importance of accurate information dissemination and urged taxpayers to make informed decisions regarding their tax planning strategies.

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