In 2023-24 six Crore Tax Returns Filed, 70% Under New Tax Regime

Around 60 million income tax returns have been filed for the 2023-24 fiscal year, with 70% of these returns opting for the new simplified tax regime. This regime offers a lower tax rate but fewer deductions, Revenue Secretary Sanjay Malhotra said.

Speaking at the post-budget session of the PHD Chamber of Commerce and Industry, Malhotra noted that initially, there were some concerns, particularly among certain sections, regarding whether people would switch to the simplified tax regime. However, the significant majority of taxpayers choosing this new regime reflects a positive response and a successful transition to the simplified system.

He added that the introduction of the new tax regime, designed to streamline the tax process, has seen lower tax rates compared to the previous system, albeit with fewer exemptions and deductions. Malhotra emphasized that this shift aims to reduce compliance burdens and simplify the tax system for individuals.

He also mentioned that the comprehensive review of the Income-tax Act, 1961, announced in the Union Budget for 2024-25, is scheduled to be completed within six months. The goal of this review is to make the Act more concise, clear, and understandable.

Additionally, the government plans to introduce standard operating procedures for TDS (tax deduction at source) defaults and to simplify and rationalize the compounding of such offenses. Furthermore, the two tax exemption regimes for charitable trusts will be consolidated into a single regime.