Union Finance Minister Nirmala Sitharaman announced that 72% of taxpayers have transitioned to the new tax regime, which she described as simpler and more advantageous.
Speaking at the 165th anniversary of the Income Tax Department on Wednesday, August 21, the Finance Minister emphasised the ease of the new system, noting its lack of exemptions and associated complications.
“Within two years of bringing in the new regime, we have seen 72% taxpayers shifting to it. The new regime has been accepted as a very well thought through and simplified regime,” Sitharaman stated.
The FM added, “It is an option and a choice. We are not compelling people. India’s direct taxation is understanding the requirements of the taxpayers. We are just making a nudge to the taxpayers and not compelling them.”
At the event, Sitharaman also congratulated Indian taxpayers for their significant role in supporting the country’s economy and highlighted a net addition of 58.57 lakh first-time tax filers this year.
A record 7.28 crore Income Tax Returns (ITRs) were filed for the assessment year (AY) 2024-25 by the deadline of July 31, 2024. This marks a 7.5% increase compared to the 6.77 crore ITRs filed by the same date in the previous year, AY 2023-24.
She lauded the efforts of tax officers, acknowledging the challenges they faced over the past decade to achieve record-breaking income tax collections.
“The last 10 years have been very challenging, and the performance by CBDT is appreciable,” she remarked.
The FM also asked tax officers to use simpler words in notices or letters they sent to taxpayers, exercising the power bestowed upon them judiciously.
“The communication you use has to showcase that you are reaching the assessee with a particular reason and your side of the story should be crystal clear.”
The Finance Minister also hinted at upcoming reforms, revealing that parts of the Tax Code would be simplified within six months.
Source from: https://www.cnbctv18.com/economy/fm-sitharaman-72-percent-of-taxpayers-have-shifted-to-new-tax-regime-19463392.htm