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Finance Ministry clarifies misinformation on social media regarding income tax regime changes

The Finance Ministry has clarified that there is no new change in the income tax regime coming from April 1, 2024. The misleading information circulating on social media platforms is false. The new tax regime under Section 115BAC(1A) was introduced in the Finance Act 2023, affecting non-companies and non-firms.

The new tax regime offers lower tax rates while omitting various exemptions and deductions, except for standard deductions. Taxpayers have the option to choose between the old and new tax regimes based on their individual preferences. The option to opt out of the new tax regime is available until the filing of returns for the Assessment Year 2024-2025.

Eligible individuals without business income can switch between the regimes for each financial year. The Finance Ministry emphasizes the importance of understanding the implications of the new tax regime and encourages taxpayers to make informed decisions based on their financial circumstances. Stay informed and make the best choice for your tax situation.

IANS

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