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NEW DELHI: The finance ministry on Monday mentioned there isn’t any change within the new earnings tax regime for people for the present fiscal 12 months and particular person taxpayers can decide out of the regime on the time of submitting their ITR, Clarifying on social media posts claiming sure adjustments within the new tax regime efficient April 1, the ministry mentioned, “There isn’t a new change which is coming in from 01.04.2024.”
A modified new earnings tax The regime was rolled out from the monetary 12 months starting April 1, 2023, for people underneath which the tax charges are “considerably decrease”.
Nonetheless, the good thing about numerous exemptions and deductions (aside from normal deduction of Rs 50,000 from wage and Rs 15,000 from household pension) is just not out there, as within the outdated regime.
“New tax regime is the default tax regime. Nonetheless, tax payers can select the tax regime (outdated or new) that they assume is useful to them… Possibility for opting out from the brand new tax regime is out there until submitting of return for the AY 2024-25,” the ministry mentioned.
Underneath the brand new IT regime, earnings of as much as Rs 3 lakh is exempt from tax. A 5 per cent tax is levied on earnings between Rs 3-6 lakh, 10 per cent for earnings between Rs 6-9 lakh.
Earnings between Rs 9-12 lakh and Rs 12-15 lakh is topic to fifteen per cent and 20 per cent tax, respectively. A 30 per cent IT can be relevant on earnings above Rs 15 lakh.
The brand new tax regime was set as “a default regime” from 2023-24 and the Evaluation 12 months comparable to that is AY 2024-25. This may be modified by the taxpayer on the time of submitting Earnings Tax Returns (ITR) by a person.
Eligible individuals with none enterprise earnings could have the choice to decide on the regime for every monetary 12 months.
So, they’ll select new tax regime in a single monetary 12 months and outdated tax regime in one other 12 months and vice-versa, the ministry mentioned in a press release.
The outdated tax regime which remains to be in power and affords a number of deductions and exemptions, exempts earnings as much as Rs 2.5 lakh from taxes.
Earnings from Rs 2.5-5 lakh attracts 5 per cent tax, and 20 per cent for earnings between Rs 5 lakh and Rs 10 lakh. A 30 per cent tax is levied on earnings above Rs 10 lakh.
A modified new earnings tax The regime was rolled out from the monetary 12 months starting April 1, 2023, for people underneath which the tax charges are “considerably decrease”.
Nonetheless, the good thing about numerous exemptions and deductions (aside from normal deduction of Rs 50,000 from wage and Rs 15,000 from household pension) is just not out there, as within the outdated regime.
“New tax regime is the default tax regime. Nonetheless, tax payers can select the tax regime (outdated or new) that they assume is useful to them… Possibility for opting out from the brand new tax regime is out there until submitting of return for the AY 2024-25,” the ministry mentioned.
Underneath the brand new IT regime, earnings of as much as Rs 3 lakh is exempt from tax. A 5 per cent tax is levied on earnings between Rs 3-6 lakh, 10 per cent for earnings between Rs 6-9 lakh.
Earnings between Rs 9-12 lakh and Rs 12-15 lakh is topic to fifteen per cent and 20 per cent tax, respectively. A 30 per cent IT can be relevant on earnings above Rs 15 lakh.
The brand new tax regime was set as “a default regime” from 2023-24 and the Evaluation 12 months comparable to that is AY 2024-25. This may be modified by the taxpayer on the time of submitting Earnings Tax Returns (ITR) by a person.
Eligible individuals with none enterprise earnings could have the choice to decide on the regime for every monetary 12 months.
So, they’ll select new tax regime in a single monetary 12 months and outdated tax regime in one other 12 months and vice-versa, the ministry mentioned in a press release.
The outdated tax regime which remains to be in power and affords a number of deductions and exemptions, exempts earnings as much as Rs 2.5 lakh from taxes.
Earnings from Rs 2.5-5 lakh attracts 5 per cent tax, and 20 per cent for earnings between Rs 5 lakh and Rs 10 lakh. A 30 per cent tax is levied on earnings above Rs 10 lakh.
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2024-04-01 10:05:11
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