Surge in Income Tax Filings Under New Simplified Regime

Around 6 crore income tax returns for FY 2023-24 have been filed, with 70% under the simplified tax regime, according to Revenue Secretary Sanjay Malhotra. This suggests a shift towards the new regime amid its lower tax rates and reduced compliance burdens. Future plans include a comprehensive income tax review for simplification.

Around 6 crore income tax returns for the fiscal year 2023-24 have been filed, with 70% opting for the new simplified tax regime, Revenue Secretary Sanjay Malhotra announced on Tuesday.

Speaking at a post-budget session of the PHD Chamber of Commerce and Industry, Malhotra addressed the initial apprehensions about whether people would switch to the simplified tax regime.

"About 6 crore filed for last year and 70% is under the new income tax regime. The whole move has been towards simplicity with the ultimate purpose being to reduce the compliance burden," Malhotra stated.

For the previous fiscal year 2022-23, 8.61 crore Income Tax Returns were filed.

The Budget's comprehensive income tax review aims to further simplify the tax laws, with plans to release a draft and seek public suggestions soon.

Currently, India has two personal income tax regimes: the old regime with higher rates but more exemptions, and the new regime with lower rates but fewer deductions.

(With inputs from agencies.)