Sitharaman says "numbers speak for themselves" as Indians increasingly opting new tax regime - World News Network

New Delhi [India], August 21 (ANI): Numbers speak for themselves, asserted Union Finance Minister Nirmala Sitharaman addressing the 165th year of the Income Tax system in India, as she listed out how Indian taxpayers are increasingly opting for the new tax regime.
As per Ministry of Finance data, an increasing number of taxpayers have opted for the New Tax Regime this year. Out of the total Income Tax Returns (ITRs) of 7.28 crore filed for the assessment year 2024-25 till July, 5.27 crore have been filed in the New Tax Regime compared to 2.01 crore ITRs filed in the Old Tax Regime. Thus, about 72 per cent of taxpayers (about three out of four) have opted for the New Tax Regime, while 28 per cent continue to be in the Old Tax Regime.
There was widespread debate across various circles, including in the media, about whether the new regime would attract higher adoption. The latest data seemed to have doused those apprehensions.
“72 per cent moving from the old system to this (new system) very clearly shows that this has been now accepted as a very well thought through system, wherein the rates are simple,…no compliance headaches, and therefore has become very attractive,” Sitharaman said, addressing the 165th year of Income Tax here in the national capital.
India’s direct taxation, the Union minister, said very clearly understands the requirements of the people and gives them a flexible way of transitioning to a simpler easier, and easy-to-comply system.
“The transition is more on the principle of nudge rather than ‘this is it’ take it or else ‘you have to comply and there is no alternative’. That is not the approach our government has taken,” she explained, adding that simpler tax systems tend to widen the tax net.
In the Budget for 2020-21, the government, to provide relief to individual taxpayers and to simplify the income-tax law, had proposed to bring a new and simplified personal income tax regime wherein income tax rates were significantly reduced for those who forgo certain deductions and exemptions
During her address, she suggested to tax officials that the tax notices they send out to taxpayers must be written simply and straightforwardly, devoid of jargon and complexities.
Also, she categorically urged tax officials to use enforcement measures against taxpayers only as a last resort. Actions taken should not be disproportionate to the issues at hand, the minister said.
The taxpayers and tax professionals made their compliances in time, leading to a surge in the filing of Income-tax Returns (ITRs), which resulted in a new record of ITRs filed till 31st July 2024. The total number of ITRs for AY 2024-25 filed till July 31, 2024, is more than 7.28 crore, which is 7.5 per cent more than the total ITRs for AY 2023-24 (6.77 crore) filed till July 31, 2023.
Income tax is a government levy on the income earned by individuals and businesses during a financial year. “Income” encompasses various sources, including Income from Salary, Income from House Property, Income from Business or Profession, Income from Capital Gains, and Income from Other Sources.
In his welcome address, the Chairman, of CBDT, Ravi Agrawal gave an overview of the progress made by the CBDT in recent years and emphasised that the department would continue to use technology-driven processes to realize the vision of a ‘Viksit Bharat.’
He further highlighted the digital transformation of the department coupled with non-intrusive tax administration, at the same time, achieving a 17.7 per cent growth in direct tax collections in 2023-24.
The CBDT chief further emphasized the success of the New Tax Regime, broadening the tax base, the success of the faceless assessment regime, and the comprehensive review of the Income-tax Act underway for simplification and certainty of taxpayers. (ANI)

Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News