Confused about which tax regime is better for salaried individuals in FY 2023-24? Understand the provisions of the new tax regime, eligibility, and FAQs here.
Before knowing which tax regime is better old or new, Let’s understand first the new tax regime Provisions.
The new regime of taxation has been introduced by the Finance Act, 2020 by insertion of a new Section 115BAC. Which has been amended by finance act 2023 .
The new Tax regime (Section 115 BAC) is applicable to;
And, If assessee opts for New tax Regime , the total income shall be computed without any exemption or deduction under the provisions of:-
but, include following deduction and exemption
No tax till Rs 7 lakhs of Taxable income
Amount of Rebate under section 87A is Rs 7 lakhs under new Tax regime. So, No Tax required to be paid till Rs 7 lakhs taxable income.
Slab Rate of New tax Regime is ;
|Total Income (Rs)
|Up to 3,00,000
|From 3,00,001 to 6,00,000
|From 6,00,001 to 9,00,000
|From 9,00,001 to 12,00,000
|From 12,00,001 to 15,00,000
Q1. Which Option is better for salaried Person for FY 23-24
Ans: Any of the Tax regime is better for salaried person till Annual salary (CTC) of Rs 10 lakhs so can opt any new tax regime both are better. However, after Rs 10 Lakh Annual Salary (CTC) Old tax regime is only better because of allowance and deduction available under this regime.
Note: While you are making selection with employer about tax regime and you’re looking for your annual salary may increase than RS 10 Lakhs this year either with current employment or due to change of new employment then in my view it is preferrable to opt old tax regime then your TDS does not deduct higher
Q2. When will a salaried employee Opt the option of new or old tax regime?
Ans : An employee have to opt the tax regime option with your employer in starting of the FY 23-24. However, this option decision becomes Final when a person opt the Option at the time of their ITR filing.
So, anyone can change the tax regime till Filling of ITR for FY 23-24 even if they opted with employer.
Q3. Can the option once opt it will not change in next year?
Ans: In the case of Salaried Person option can be change every year
However, In case Individual/HUF having income from business/profession and once If opts new tax regime then he/she is bound by the section 115BAC for lifetime.
Also, He/ She has to file Form 10-IE for exercising this option of new tax regime
However To Salaried Person No Form is required to fill to exercise the option only have to tick mark in option given into ITR’s
Q4. Can the option change in same year once ITR has been filed for that year?
Ans: Yes, an assessee can change the option in same year with revised their return.
So, for the same year this option is available till the last due date of Revised Return
Disclaimer: The views expressed in this article are the personal views of the author. Neither the views nor the analysis constitute a legal opinion and are not intended to be advice