Budget 2024: Will there be a 'sunset clause'?
Budget 2024: Will there be a 'sunset clause'? Finance minister Nirmala Sitharaman has announced major changes in the tax slabs of this regime in the budget to make the new income tax regime attractive.Not only this, under the new tax regime, the standard deduction has been increased from Rs 50,000 to Rs 75,000, but its benefit will be available only to those taxpayers who have adopted the new tax regime. This benefit will not be available under the old tax regime. The limit of standard deduction in the old tax regime is Rs 50,000. Along with this, a comprehensive review of the Income Tax Act 1961 has also been announced in the budget. In such a situation, the question arises whether the government is moving towards making the old tax regime ineffective?Will the old tax regime be ineffective?In the press conference after presenting the budget, when the Finance minister was asked this question that continuous announcements are being made to make the new tax regime attractive but no relief has been given in the old tax regime, will the old tax regime be made ineffective? In response to this question, the Finance minister said, I cannot say anything about the sunset clause of the old tax regime right now. But the government's intention is to make a simple tax regime. She said, the new income tax regime has been introduced to simplify the old tax regime. The Finance minister said, there is an effort to move forward towards a simple tax regime through the review of the income tax law. But the Finance minister clarified that nothing can be said right now about making the old tax regime ineffective. 70% of the 4 crore ITRs have chosen the new tax regimeDuring the press conference itself, Revenue Secretary Sanjay Malhotra said, income tax returns are currently being filed for the financial year 2023-24 and assessment year 2024-25. And out of the 4 crore income tax returns filed so far, 70 percent of the taxpayers have filed income tax returns under the new income tax regime.