Top 10 Best Private Banks in India List 2024
January 03, 2024
The Income Tax Department, under the Ministry of Finance, has confirmed some welcome news for taxpayers! There will be no changes to income tax slabs for the financial year 2024-25. This means the existing tax brackets will continue to apply from April 1, 2024.
The decision to maintain the status quo follows speculation about potential tax revisions. While the government has not officially disclosed the reasons behind its stance, factors like economic stability or focusing on other fiscal priorities may have contributed.
Clarity On The Subject
While the income tax slabs for FY 2024-25 will remain unchanged, some confusion has arisen regarding the new tax regime introduced in the Finance Act 2023. Let’s clarify things.
New Tax Regime vs. Old Tax Regime
The new tax regime introduced as an alternative to the old regime (without exemptions), applies to individual taxpayers (excluding companies and partnerships). It became the default option from the Financial Year (FY) 2023-24, corresponding to the Assessment Year (AY) 2024-25.
Key Differences:
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
- Tax Rates: The new regime offers lower tax rates than the old regime.
- Exemptions and Deductions: Unlike the old regime with various exemptions and deductions, the new regime allows only a standard deduction of Rs 50,000 from salary income and Rs 15,000 from family pensions.
Choosing the Right Regime
Taxpayers can choose the regime (old or new) that best suits their financial situation. They can even switch regimes annually if they don’t have business income.
