Finance Act 2023: New Tax Regime Default for Individuals, Standard Deduction Unchanged
Changes Effective from AY 2024-25
The Finance Act 2023 has implemented significant amendments to tax regulations, impacting salaried individuals in India. Starting from the assessment year (AY) 2024-25, the new tax regime will become the default tax structure for individuals.
Standard Deduction and Other Deductions
Under both the old and new tax regimes, salaried taxpayers will continue to receive a standard deduction of Rs 50,000 for the financial year (FY) 2023-24. However, only a limited number of deductions are available under the new tax regime, including a standard deduction of Rs 50,000 and interest on home loans under Section 24b.
The Finance Act 2023 has not introduced any changes to the standard deduction or other deductions for FY 2023-24. Taxpayers should carefully evaluate their options and choose the tax regime that offers the best benefits based on their individual circumstances.
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