BDO Malaysia’s Post

**No new tax changes effective from April 1, 2024; CBDT issues clarification on New Tax regime** **Press Release, dated 31-03-2024 In order to provide clarity on the misleading information related to the new tax regime, a press release was released by the Ministry of Finance. It is clarified that the new regime under section 115BAC(1A) was introduced in the Finance Act 2023, and no new change has come in since 01.04.2024. **This regime applies to persons other than companies and firms as a default regime from the financial year 2023-24 (Assessment Year 2024-25). Under the new tax regime, the tax rates are significantly lower. However, the benefit of various exemptions and deductions (other than the standard deduction of Rs. 50,000 from salary and Rs. 15,000 from family pension) is not available, as in the old regime. **Although the new tax regime is the default tax regime, taxpayers can choose the tax regime they think benefits them. The option for opting out from the new tax regime is available till the filing of the return for the AY 2024-25. Eligible persons without any business income will have the option to choose the regime for each financial year. **Therefore, taxpayers can choose a new tax regime in one financial year and an old one in another year and vice versa

New Post: Should I use the new tax regime or the old tax regime for FY 2023-2024 (AY 2024-2025)? - https://lnkd.in/gMxTrhk2

Comparing the Old and New Tax Regimes: Insights from India’s July 2024 Budget The July 2024 Union Budget has renewed the discussion around choosing between the old and new tax regimes. Each regime offers specific benefits, and understanding these differences is key to effective tax planning. A. Old Tax Regime: Traditional Benefits The old tax regime is favored by those who take advantage of exemptions and deductions. Key points include: - Exemptions and Deductions: It offers deductions under sections like 80C and 80D, helping to reduce taxable income significantly. - Tailored Planning : This regime allows taxpayers to plan investments strategically to maximize tax savings. However, the old regime requires careful management of records and knowledge of the various deductions. B. New Tax Regime: Simplification Introduced in 2020 and updated in 2024, the new tax regime simplifies taxation by offering lower rates with fewer deductions. Notable aspects include: - Ease of Filing: With fewer deductions, tax filing becomes more straightforward. - Lower Rates : It provides reduced tax rates across different income levels, benefiting those without major deductions. - Flexibility : This regime is ideal for those seeking a simpler, less complex tax process. #Updates in the 2024 Budget The 2024 Budget made changes that might influence the choice between regimes: - Income Slab Adjustments: New regime slabs have been revised, offering more competitive rates. - Increased Standard Deduction : A higher standard deduction is available, making the new regime more appealing to certain taxpayers. Making the Choice Choosing between the old and new tax regimes depends on factors like income, investment strategy, and financial goals. The old regime may benefit those with significant deductions, while the new regime suits those preferring simplicity and lower rates. Regularly reviewing your tax strategy is crucial to ensure it aligns with your financial objectives. Both regimes aim to optimize tax liability under current laws. #TaxPlanning #IndianBudget2024 #TaxStrategy #LinkedInInsights

📢 New LTCG Tax Proposals Under Review! 📢 Summary: The government is considering proposals to modify the long-term capital gains (LTCG) tax regime announced in FY25's budget. These changes may impact indexation benefits for property, gold, and other unlisted assets. Key Points: 1. Phased Transition: - India Inc has requested a phased transition to the new LTCG tax regime. - Proposals include a higher tax rate with indexation or a lower rate without indexation. 2. Proposed Tax Rates: - 20% LTCG rate with indexation. - 12.5% LTCG rate without indexation. - Options for taxpayers to choose between the old and new regimes. 3. Government Discussions: - The finance ministry is reviewing these proposals. - A final decision will be made closer to the Parliament's reply to the Finance Bill. 4. Implications: - Potential rise in black money transactions. - Retroactive impact on properties purchased on or after April 1, 2001. - Choice between 20% LTCG with indexation or 12.5% without indexation to accommodate taxpayer preferences. 5. Comparisons: - Similar choices exist for domestic companies and individual taxpayers between concessional and normal tax rates. 6. Industry Recommendations: - Industry groups advocate for a gradual transition, allowing time for adaptation. - Formal submissions to the finance ministry are forthcoming. 7. Policy Context: - Aligns with the government's approach of providing options during significant tax regime changes. These changes aim to balance taxpayer needs with the government's tax policy goals. Stay tuned for further updates on this evolving situation.

How to switch from new tax regime to old tax regime for FY23-24 https://lnkd.in/gzXiZwnD Download Economic Times App to stay updated with Business News - https://lnkd.in/ekc2t45

The White House just released the FY 2025 budget and Green Book detailing the administration's tax plans. Key highlights include raising the corporate income tax rate to 28%, introducing a 25% minimum tax on individuals with wealth over $100 million, and more. Stay tuned for updates on these potential changes! #taxes #budget2025 #taxreform #WhiteHouse #finance https://hubs.li/Q02wJMsg0

Presidential Fiscal Policy and Tax Reform Committee says it will use the Federal Capital Territory (FCT) as a model in the implementation of harmonisation of taxes in the country https://lnkd.in/ejUVbg4z #TaxReform

Basic understanding of New Tax Regime The recent Budget 2024 introduced several notable changes to the taxation system. As a Chartered Accountant, it's essential to help the public understand these changes and their impact on taxpayers. 👉  Savings from Change in Tax Slabs The new tax regime allows taxpayers to save significantly due to the restructuring of the tax slabs. Here's a breakdown: 1.  Income up to ₹3 Lakhs:     -  Old Regime:  0%   -  New Regime:  0%   -  No Change  2.  Income from ₹3 to 7 Lakhs:     -  Old Regime: 5% (₹15,000 tax)   -  New Regime: 5% (₹20,000 tax)   -  Impact:  No change in rate, but adjustments based on overall slab restructuring. 3.  Income from ₹7 to 10 Lakhs:     -  Old Regime: 10% (₹30,000 tax)   -  New Regime: 10% (₹30,000 tax)   -  Impact:  No change 4.  Income from ₹10 to 12 Lakhs:     -  Old Regime: 15% (₹45,000 tax)   -  New Regime: 15% (₹30,000 tax)   -  Impact:  Tax reduced by ₹15,000 5.  Income from ₹12 to 15 Lakhs:     -  Old Regime: 20% (₹60,000 tax)   -  New Regime: 20% (₹60,000 tax)   -  Impact: No change 6. Income above ₹15 Lakhs:    - Old Regime: 30% (₹1,50,000 tax)   - New Regime: 30% (₹1,50,000 tax)   - Impact: No change 👉  Total Tax Comparison: - Old Regime: ₹3,00,000 - New Regime: ₹2,90,000 - Savings: ₹10,000 👉  Standard Deduction: - Old Regime: ₹50,000 - New Regime: ₹75,000 - Additional Savings: ₹7,500 👉  Total Savings: Overall, the new regime provides a total savings of ₹17,500 when considering both the slab restructuring and increased standard deduction. 👉  Who Benefits? The new tax regime, despite offering fewer exemptions, presents significant benefits, particularly for young professionals and those new to the job market. It simplifies the tax process and offers immediate financial benefits. Understanding these changes can help taxpayers make informed decisions and optimize their tax liabilities effectively. #Tax #Budget2024 #taxslabs #ca

Our Partner, Kumarmanglam Vijay, has been quoted in LiveMint in their article titled, ‘Budget 2024: Expectations for tax sops under old regime run high’.   The article discusses expert views on expectations from the budget on the personal tax front.   Please click here to read the article: https://lnkd.in/dmfVKiUG

The 2024 Annual Report on Taxation (ART) presents facts and analysis of the state of play of taxation and tax systems in the Member States of the European Union (EU). The report looks at the development of the tax mix from various perspectives to inform the debate about: (i) the challenges faced by different types of taxes and different tax bases; and (ii) how the design of taxes can affect different economic agents and their behaviour. The report discusses both recent reforms in tax systems and changes in the main indicators used by the Commission to assess taxation policies in EU Member States and at EU level. The analysis contains a survey of different tax bases and types of taxes and their role for the tax mix, with a focus on differences across countries and over time.