Taxation Policy
About 72% taxpayers opted new tax regime for assessment year 2024-25
This story was originally published at 16:07 IST on 2 August 2024
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NEW DELHI – About 72% of the taxpayers who filed income tax returns for the assessment year 2024-25 (Apr-Mar) have opted for the new tax regime, the finance ministry said today. Only 28% opted for the old tax regime, the ministry said in a release.
As of Jul 31, more than 72.8 mln income tax returns were filed, up 7.5% from a year ago, the ministry said. Jul 31 was the last date for filing income tax returns for the assessment year 2024-25, or financial year 2023-24, without paying a late fee.
The new simplified tax regime, introduced in the Budget for 2020-21, offers lower tax rates but has very few deductions.
Though the rates are higher under the old regime, taxpayers can claim deductions under various sections of the Income Tax Act.
The government has been offering various sops for the new income tax regime to wean taxpayers from the old regime. The Budget for 2024-25 provided tax savings of up to 17,500 rupees under the new regime.
Finance Minister Nirmala Sitharaman said on Jul 23 that about two-thirds of taxpayers have shifted to the new tax regime, though the government is yet to decide on the sunset date for the old tax regime.
According to the latest available data, in the current fiscal up to Jul 11, the government's direct tax collection, net of refunds, was 5.74 trln rupees, up 19.5% from the year-ago period. The net corporate tax collections were 2.10 trln rupees and personal income tax collections were 3.46 trln rupees. The government aims to collect 10.20 trln rupees from corporate tax and 11.87 trln rupees from personal income tax in the current financial year. End
Reported by Priyasmita Dutta
Edited by Saji George Titus
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