April 1st is the start of a new financial year in India
April 1st is the start of a new financial year in India, i.e., FY 2024-25. This is important for your wallet because most new tax rules announced in the budget by Finance Minister Nirmala Sitharaman take effect on this day. As a new financial year begins, individuals need to evaluate the taxes they are liable to pay according to the latest income tax regulations, if any changes have occurred.
New Tax Regime Default Adoption
Starting April 1, 2024, the new tax system becomes the default option in India. Its objective is to streamline the tax filing procedure and promote greater participation in the new regime, featuring reduced tax rates albeit with fewer deductions and exemptions.
However, the tax brackets for the new system remain the same for the financial year 2024-25 (tax year 2025-26) as there were no changes announced in the recent budget.
The new tax regime automatically applies unless an individual takes specific action to opt for the old regime. If you do not inform your employer that you want to opt for the old tax regime, your employer will deduct tax from your salary income based on the new tax regime.
Here are other important tax-related dates for April 2024:
- April 7: Due date for the deposit of Tax deducted/collected by an office of the government for March 2024
- April 14: Deadline for issuing TDS certificate for tax deducted under Section 194-IA, Section 194-IB, Section 194M and Section 194S in February 2024
- April 15: Due date for the quarterly statement in respect of foreign remittances in Form No. 15CC for the quarter ending March 2024
- April 15: Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of a transaction
- April 30: Due date for filing challan statement for tax deducted under sections 194-IA, 194-IB, 194M and 194S in March 2024
- April 30: Due date to deposit tax deducted by an assessee for March 2024.
- April 30: Due date for uploading Form 15G/Form 15H for the January-March 2024 quarter