Taxman sets out rules to switch between old, new filing regimes

The new personal income tax regime, introduced in 2020, was modified to make it more attractive for taxpayers.

- Gireesh Chandra Prasad

New Delhi: The Central Board of Direct Taxes (CBDT) has amended its rules in order to implement changes, announced in the FY24 budget, to the new personal income tax regime and to set out the modalities for taxpayers who wish to switch between the old and new regimes.

The tax authority also capped at 40% the depreciation rate applicable for assets of individuals with business income, showed the Income-tax (Tenth Amendment) Rules, 2023.

Under the new personal income tax regime, no additional depreciation will be available and although different rates are available for different classes of assets, the maximum rate applicable is capped at 40%, explained Deepesh Chheda, partner at Dhruva Advisors, a tax advisory firm.