Finance Ministry on Income Tax Slab: Clear information regarding the tax regime has been given by the Finance Ministry. The ministry has said that no new changes have been made from April 1, 2024.
Income Tax Update: There is a lot of discussion on social media regarding the new tax regime. Now the Finance Ministry has given clear information regarding the tax regime. For the last few days, many misleading things were being seen on social media regarding the new tax regime.
Along with this, it was being told that there is going to be a change in the tax regime from April 1, 2024, but the Finance Ministry has made it clear by tweeting that there is not going to be any change in the tax regime.
Finance Ministry gave information
The ministry has said that no new changes have been made from April 1, 2024. A revised new income tax system was implemented for the people in the financial year starting from April 1, 2023, under which the tax rates are “much lower”. However, it does not have the benefit of various exemptions and deductions (except the standard deduction of Rs 50,000 from salary and Rs 15,000 from family pension) like the old system.
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
The ministry has said that the new tax regime is the ‘default’ tax system. However, taxpayers can choose the new or old tax system as per their convenience as per their convenience… The option to opt out of the new tax system is available till the filing of return for the year 2024-25.
How much is the tax?
In the new tax regime, there is no tax on annual salary of Rs 0-3 lakh. After this, 5% tax is levied on income of Rs 3 to 6 lakh, 10% on income of Rs 6 to 9 lakh, 15% on income of Rs 9 to 12 lakh, 20% on income of Rs 12 to 15 lakh and 30% on income above Rs 15 lakh. Apart from this, 4% is charged as Health and Education Cess.
If you do not choose the tax regime then…
Let us tell you that if any taxpayer forgets to select his tax regime or does not select the tax regime, then his new tax regime will automatically be implemented. After this, your tax will be automatically deducted as per the new tax regime.
Tax slab in old tax regime-
- 0 to ₹2.5 lakh = 0
- ₹2.5 lakh to ₹5 lakh = 5%
- ₹5 lakh to ₹10 lakh = 20%
- Above ₹10 lakh = 30%
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