Synopsis:
- 70% of nearly 6 crore Indian taxpayers choose new simplified tax regime in 2023-24.
- New regime offers lower tax rates but fewer deductions.
- Government plans to streamline tax system. Draft of changes to be released for public feedback soon.
A record-breaking 70% of the nearly 6 crore Indians who filed their income tax returns for the financial year 2023-24 have opted for the new, simplified tax regime. This choice reflects a significant shift towards a less complex tax system.
The government introduced the new regime to reduce the tax burden on taxpayers by offering lower tax rates. Despite concerns about fewer deductions, millions have embraced the change.
Sanjay Malhotra, the Revenue Secretary, expressed his satisfaction with the overwhelming response to the new regime, seeing it as a successful step towards simplifying the tax compliance process. “About 6 crore individuals filed their taxes last year, and 70% of them have chosen the new income tax regime. The entire objective has been to simplify and reduce the burden of compliance,” stated Malhotra.
Furthermore, the government plans to further streamline the tax system to simplify it. They will soon release a draft of the proposed changes and welcome suggestions from the public.
New vs. Old Tax Regime for Salaried Individuals
Currently, taxpayers have the option to select either the old tax regime, which has higher tax rates but more deductions, or the new regime, which offers lower rates and fewer deductions.
