MY KOLKATA EDUGRAPH
ADVERTISEMENT
regular-article-logo Sunday, 16 June 2024

No change in new income tax regime, individuals free to opt out during filing returns

'New tax regime is the default tax regime. However, taxpayers can choose the tax regime (old or new) that they think is beneficial to them... Option for opting out from the new tax regime is available till filing of return for the assessment year 2024-25,' the finance ministry said

Our Special Correspondent New Delhi Published 02.04.24, 11:24 AM
Representational image

Representational image File picture

The finance ministry said there was no change in the new income tax regime for individuals for the current fiscal year and individuals can opt out of the regime at the time of filing their returns.

Clarifying social media posts claiming certain changes in the new tax regime effective April 1, the ministry said, "There is no new change which is coming in from 01.04.2024".

ADVERTISEMENT

A modified regime was rolled out from the financial year beginning April 1, 2023, for individuals under which the tax rates are "significantly lower".

However, 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.

"New tax regime is the default tax regime. However, taxpayers can choose the tax regime (old or new) that they think is beneficial to them... Option for opting out from the new tax regime is available till filing of return for the assessment year 2024-25," the finance ministry said.

Under the new I-T regime, income of up to Rs 3 lakh is exempt from tax. A 5 per cent tax is levied on income of Rs 3-6 lakh, 10 per cent for income of Rs 6-9 lakh.

Income of Rs 9-12 lakh and Rs 12-15 lakh is subject to 15 per cent and 20 per cent tax, respectively. A 30 per cent tax would be applicable on income above Rs 15 lakh.

Follow us on:
ADVERTISEMENT