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Apr 08, 2024
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New vs old tax regime for TDS on salary: Choosing wrong tax regime in April can lead to higher tax
April 1, 2024, marks the beginning of the new financial year i.e. 2024-25. However, the old income tax laws applicable last financial year (FY 2023-24) will continue to apply in FY 2024-25 as the government has not changed the income tax laws. It is possible that some changes in the income tax laws may be announced in the full budget to be presented by the new government after elections are over but till then the old laws continue.
April is an important month for salaried individuals from a tax planning perspective - for 2024-25 in this case. This is because salaried individuals are required to inform their respective employers of the tax regime - old or new - that they wish to opt for during FY2024-25 in April itself. The tax regime a salaried individual opts for will decide the amount of tax that the employer will deduct from his/her salary income during the financial year.
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