The finance ministry assures individuals no new changes in the income tax regime for the current fiscal year. Taxpayers retain the option to opt out of the regime during ITR filing.
Addressing social media claims, the ministry clarifies, ‘No new change is coming from 01.04.2024.’ The modified tax regime, effective since April 1, 2023, offers significantly lower tax rates but excludes various exemptions and deductions.
Under the new regime, income up to ₹ 3 lakh is exempt, with progressive tax rates up to 30% for incomes above ₹ 15 lakh. Taxpayers can switch between regimes at the time of filing ITR, with the new regime set as the default option.
Eligible individuals, excluding those with business income, can select their preferred regime annually. The old tax regime, still in effect, provides deductions and exemptions, with tax rates ranging from 5% to 30% based on income brackets.
