No changes are being made to the new tax regime from the financial year 2024-25, which begins April 1, the finance ministry has said, describing as misleading some social media posts that said otherwise.
Though the new tax regime is the default one, taxpayers can opt out of it till the filing of returns for assessment year 2024-25, the ministry said late in the night on March 31.
“The taxpayers can choose the tax regime that they think is beneficial to them. The 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 a new tax regime in one financial year and old tax regime in another year and vice versa. There is no new change which is coming in from April 1, 2024,” the statement said.
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From the assessment year 2024-25, the new regime is the default choice for individuals other than companies and firms.
Under the new 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) are not available, as in the old regime.
“It has come to the notice of the Central Board of Direct Taxes’ (CBDT) that factually incorrect posts related to the new tax regime are being spread on some social media platforms,” it said.
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