A New Individual Direct Tax Regime in India.
Aditham Prakash Rao
, Dr. Shubhra Aanand
Key words : New tax regime, existing tax regime, Tax slab, rates of tax, financial year, tax payers
The insertion of new Section 115BAC into the Income Tax Act, through the amendment brought in by Finance Act, 2020 has inserted into provision for adoption of new tax regime apart from the existing tax regime. It applies for the financial year starting from 2020-21. The new tax regime has been made optional and the tax payer has been given a choice to choose between the two tax regimes. The new tax regime has been restricted only to individuals and HUFs. The Government of India has justified the introduction of new tax regime as a very important step towards simplification of income tax calculations and further make it simple in understanding and ease in compliance. The new tax regime offers a lower rates of taxes with the increase in the number of slabs of income tax subject to the condition that the tax payer foregoes certain important deductions and exemptions which hitherto has been allowed under the existing tax regime. A tax payer has been given the option of choosing every year an appropriate tax regime as per his needs and requirements at the time of filing the return. However, this requires that the computation of tax liability is required to be done both under the existing regime and new tax regime to conclude as to which regime offers a better choice for the tax payers. In the New Tax Regime : Budget : Financial year 2023-24, has been made more attractive to enable the tax payers to shift to the new tax regime more beneficially. An attempt has been made in this paper to understand the tax liability under both the regimes.
"A New Individual Direct Tax Regime in India.", TIJER - TIJER - INTERNATIONAL RESEARCH JOURNAL (www.TIJER.org), ISSN:2349-9249, Vol.11, Issue 2, page no.a222-a230, February-2024, Available :https://tijer.org/TIJER/papers/TIJER2402026.pdf
Volume 11
Issue 2,
February-2024
Pages : a222-a230
Paper Reg. ID: TIJER_151202
Published Paper Id: TIJER2402026
Downloads: 000280
Research Area: Management All
Country: Pune, Maharashtra, India
ISSN: 2349-9249 | IMPACT FACTOR: 8.57 Calculated By Google Scholar | ESTD YEAR: 2014
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.57 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: TIJER (IJ Publication) Janvi Wave
