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New Delhi: The Finance Ministry clarified misinformation on social media about the new tax rules, stating that there will be no changes from April 1, 2024. Taxpayers can choose between the old and new tax systems based on their preferences and financial situation. They can switch back to the old system until filing their returns for the 2024-25 assessment year. Those without business income can switch between the two systems each year.
In a statement posted on social media, the Finance Ministry outlined the main points:
- No changes will take effect from April 1, 2024.
- The new tax regime differs from the old regime that was introduced in the Finance Act 2023.
- The new tax rules apply to individuals, not companies or firms that started from the 2023-24 financial year.
- Under the new rules, tax rates are lower, but most exemptions and deductions are not available.
- While the new tax regime is the default, taxpayers can choose between the old and new tax regimes according to their financial situation.
- Taxpayers can opt out of the new tax system until filing for the 2024-25 assessment year.
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