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“No New Change In Tax Regime”: Authorities Explains What Adjustments From Immediately

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The Ministry of Finance on Sunday clarified that there isn’t any new change within the tax regime that’s coming into impact from April 1. Only a day forward of the interim finances’s earnings tax proposals coming into impact, the finance ministry debunked the unfold of misinformation regarding the new tax regime.

Late on Sunday, the Ministry of Finance shared a publish on X (previously Twitter), clearing the confusion over the brand new tax regime. In an in depth observe, the ministry defined that the brand new tax regime has low charges however fewer exemptions and deductions.

The Ministry of Finance wrote, “It has come to note that deceptive info associated to the brand new tax regime is being unfold on some social media platforms. It’s due to this fact clarified that: There isn’t any new change which is coming in from 01.04.2024.”

The finance ministry shared a desk explaining the earnings tax slabs as per the brand new tax regime. It added, “The brand new tax regime beneath part 115BAC(1A) was launched within the Finance Act 2023, as in comparison with the prevailing outdated regime (with out exemptions) (SEE TABLE BELOW)”

Earnings from ₹0 to ₹3,00,000: 0 per cent tax fee

Earnings from ₹3,00,001 to ₹6,00,000: 5 per cent

Earnings from ₹6,00,001 to ₹9,00,000: 10 per cent

Earnings from ₹9,00,001 to ₹12,00,000: 15 per cent

Earnings from ₹12,00,001 to ₹15,00,001: 20 per cent

Earnings above ₹15,00,000: 30 per cent

Within the outdated tax regime, the earnings tax slabs had been:

Earnings from ₹0 to ₹2.5lakh: 0 per cent

Earnings from ₹ 2.5 – ₹ 5lakh: 5 per cent

Earnings from ₹ 5- ₹10 lakh: 20 per cent

Earnings above ₹ 10 lakh: 30 per cent

The observe continued, “New tax regime is relevant for individuals aside from corporations and companies, is relevant as a default regime from the Monetary Yr 2023-24 and the Evaluation Yr akin to that is AY 2024-25. Below the brand new tax regime, the tax charges are considerably decrease, although the advantage of numerous exemptions and deductions (aside from the usual deduction of Rs. 50,000 from wage and Rs. 15,000 from the household pension) will not be accessible, as within the outdated regime.”

The finance ministry added, “New tax regime is the default tax regime, nonetheless, taxpayers can select the tax regime (outdated or new) that they suppose is useful to them. Choice for opting out from the brand new tax regime is obtainable until submitting of return for the AY 2024-25. Eligible individuals with none enterprise earnings may have the choice to decide on the regime for every monetary yr. So, they will select a brand new tax regime in a single monetary yr and an outdated tax regime in one other yr and vice versa.”

In the meantime, in January, individuals had been alerted about “pretend” information claiming that Finance Minister Nirmala Sitharaman will introduce a policy mandating three-day week-offs in all companies.

The Reality Verify Unit (FCU) of the PIB shared a publish on X (previously Twitter) saying no such proposal has been put forth by the finance ministry.

It wrote, “A picture circulating on social media claims that the Union Finance Minister Nirmala Sitharaman will announce a 3-day week off coverage within the subsequent #Funds. This declare is #pretend…No such proposal has been floated by the Ministry of Finance.”

The interim finances for 2024-25 was introduced by the Finance Minister on February 1. Learn all about it here.

(Apart from the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)

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