New Delhi: As the new financial year (2024-25) kicks off, the Finance Ministry has issued a crucial statement regarding income tax, aiming to dispel misinformation circulating on social media. Here are the key details:
- No Change for FY 2024-25: Contrary to rumors, there have been no alterations to the tax regime for the new financial year starting from April 1. The government has maintained the status quo, ensuring continuity for taxpayers.
- Default Implementation: The new tax regime remains in effect by default, continuing from the last financial year. However, taxpayers retain the flexibility to modify their choice until they file their Income Tax Return (ITR).
- Yearly Regime Selection: Taxpayers, especially those without business income, can switch tax regimes annually. Whether opting for the new regime one year and reverting to the old regime the next, the choice lies with them.
- Automatic Application: If a taxpayer fails to actively select a regime, the new tax rules automatically apply. Income tax deductions align with the chosen regime.
- CBDT’s Vigilance: The Central Board of Direct Taxes (CBDT) is vigilant against misinformation. While most concessions have ceased under the new regime, specific exemptions remain within the tax slab.
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