Government Has Given Clarification on the New Tax Rules

  • A new tax regime under section 115BAC (1A) was introduced in Finance Act 2023. 
  • Compared to the existing old regime (without exemptions).
  • Applicable to individuals other than companies and firms. 
  • Tax rates are significantly lower under the new regime. 
  • Benefits of exemptions and deductions are not available as in the old regime. 
  • Taxpayers can choose their preferred tax regime. 
  • Option for opting out from new regime available till filing of return for AY 2024-25. 
  • Eligible persons without business income can choose a regime for each financial year. 
  • No new change from 01.04.2024.
Posted in Current Affairs.