Income tax regime changes 2024: The finance ministry reaffirmed on Monday that there are no new changes in the income tax regime for individuals for the current fiscal year, clarifying misconceptions surrounding social media posts claiming alterations effective April 1.

Addressing concerns, the ministry stated, "There is no new change which is coming in from 01.04.2024."

As a reminder, a modified income tax regime was introduced from the financial year beginning April 1, 2023, aimed at providing individuals with lower tax rates. However, this regime does not offer the benefit of various exemptions and deductions, except for the standard deduction of Rs 50,000 from salary and Rs 15,000 from family pension.

Under the new tax regime, individuals have the flexibility to opt out and choose the tax regime (old or new) they find more advantageous. The option to opt out from the new tax regime remains available until the filing of returns for the Assessment Year 2024-25.

In the new income tax regime, income up to Rs 3 lakh is exempt from tax, with a 5 per cent tax on income between Rs 3-6 lakh, 10 per cent for income between Rs 6-9 lakh, and so forth. The new tax regime was established as the default regime from 2023-24, with corresponding changes applicable for the Assessment Year 2024-25.

Eligible individuals without any business income have the flexibility to choose the tax regime for each financial year, allowing them to switch between the new and old regimes as per their preference.

Meanwhile, the old tax regime, which remains in effect, continues to provide deductions and exemptions. Income up to Rs 2.5 lakh is exempt from taxes, with a 5 per cent tax on income between Rs 2.5-5 lakh, and so on.

With these options available, taxpayers have the opportunity to assess their financial situation and select the tax regime that best suits their needs for each financial year.

(With PTI inputs.)