The Central Government on 21st June, 2023 has issued the Income-tax (Tenth Amendment) Rules, 2023. The amended rules provides new procedure to opt for the new tax regime. A new scheme of taxation has been introduced by the Finance Act ,2020 by insertion of a new Section 115BAC.
The new tax regime can be opted by person’s who can avail lower tax rates as compared to existing slab rates but on the other hand the assessee has to forego around 70 exemptions and deductions presently available. This scheme is applicable w.e.f. Assessment Year 2021-22. It is applicable to:
- Individuals
- HUFs
- Both Resident as well as Non-Residents
The scheme is, however, optional and the assessee can continue with the existing system of taxation.
As per the amendment, The the new tax regime can be opted for by filing form No. 10-IEA as per section 115BAC for any assessment year beginning on or after April 1, 2024. The withdrawal of option shall also be done using Form No. 10-IEA. Form No. 10-IEA shall be furnished electronically either under a digital signature or electronic verification code.
The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall, –
- Specify the procedure for furnishing Form No. 10-IEA;
- Specify the data structure, standards, and manner of generation of electronic verification code, and
- Be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.
