Income Tax Mail: Under the new tax structure, there is no need to pay tax on annual income up to Rs 7 lakh. This exemption will also be available on marginal income in excess of Rs 7 lakh. At the same time, this facility is not available in the old tax structure.
HR has sent an e-mail to Abhishek, who works in a multinational company. Old tax and new tax structure have been mentioned in this e-mail. Like Abhishek, all the employed people are being mailed towards the company. Many people are confused about this. Today we will clear every confusion related to your e-mail.
Question- What is in the email?
Answer- In the e-mail sent by the company, it is written – It is mandatory to choose your tax structure (new tax or old tax system) for the financial year 2023-24. You have to select it by a certain deadline.
Question- Why is the e-mail being sent?
Answer- Actually, the companies have been instructed by the Income Tax Department to deduct TDS from the salary only after asking their employees. Under this, it is mandatory for companies to ask their employees whether they have to stay in the new tax structure or shift to the old tax structure. This is the reason why companies are e-mailing their employees.
Question- What if I do not reply to the e-mail?
Answer- If you ignore this important e-mail of the company, then you will automatically come under the new tax structure. After this, the company will deduct TDS from your salary under the new tax structure. Let us tell you that Finance Minister Nirmala Sitharaman had said in the general budget itself that the new tax regime would be the default from the new financial year. This means that you have automatically come into the new tax structure.
Question- Which tax structure is right for me?
Answer- If you have invested in different tax saving schemes for the purpose of saving tax, then feel free to choose the old tax structure. On the other hand, if you have not invested anywhere, then the new tax structure is better for you. Explain that under the new tax structure, there is no need to pay tax on annual income up to Rs 7 lakh. This exemption will also be available on marginal income in excess of Rs 7 lakh.
Question- So will we have to live in the new tax structure forever?
Answer- No, you will get the option to choose the new and old tax structure for every financial year. This means that every year you will be able to choose the tax structure according to your wish and convenience.
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