Clarification regarding applicability of new tax regime and old tax regime
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| New Regime 115BAC (1A) introduced for FY 2023-24 | Existing old Regime | |||
| 0-3 lacs | 0% | 0-2.5 lacs | 0% | |
| 3-6 lacs | 5% | 2.5 -5 lacs | 5% | |
| 6-9 lacs | 10% | 5-10 lacs | 20% | |
| 9-12 lacs | 15% | Above 10 lacs | 30% | |
| 12-15 lacs | 20% | |||
| Above 15 lacs | 30% | |||
Under the new tax regime, the tax rates are significantly lower, though the benefit of various exemptions and deductions (other than standard deduction of Rs. 50,000 from salary and Rs. 15,000 from family pension) is not available, as in the old regime.
Although, new tax regime is the default tax regime, tax payers can choose the tax regime that they think is beneficial to them. The option for opting out from the new tax regime is available till filing of return for the AY 2024-25. Eligible persons without any business income will have the option to choose the regime for each financial year. So, they can choose new tax regime in one financial year and old tax regime in another year and vice versa.
There is no new change which is coming in from 01.04.2024.
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