New Delhi, July 31 (IANS) Around six crore income tax returns have been filed in 2023-24, of which 70 per cent were filed under the new simplified tax regime which offers a lower rate of tax but fewer deductions, Revenue Secretary Sanjay Malhotra has said.
Addressing the post-budget session of PHD Chamber of Commerce and Industry, Malhotra said initially some apprehensions were raised in some sections as to whether people would shift to the simplified tax regime.
However, the large percentage of taxpayers preferring to adopt the new regime reflects a positive response and the successful transition to the simplified system, he pointed out.
The new tax regime, introduced to simplify the tax process, offers lower tax rates compared to the previous regime but provides fewer exemptions and deductions. Malhotra highlighted that the move towards this regime aims to reduce compliance burdens and make the tax system simpler for individuals to deal with.
He also said that the comprehensive income tax review announced in the Budget for 2024-25 is aimed at making the tax law simpler.
“We will come up with a draft and then we will seek suggestions from stakeholders,” Malhotra added.
Currently, the country has two personal income tax regimes. In the old income tax regime, the tax rates are higher but taxpayers can claim exemptions and deductions which is a relatively more complicated process. The new tax regime is simpler as it allows the taxpayer to avail of a lower tax rate without the process of filing for deductions.
As much as 58 per cent of corporate tax has come from the simplified tax regime in FY23.
Finance Minister Nirmala Sitharaman has also announced in the Union Budget that a comprehensive review of the Income-tax Act, 1961 would be undertaken which would be completed in six months.
“The purpose is to make the Act concise, lucid, easy to read and understand,” she said, The Finance Minister also said that the government will come out with SoP (standard operating procedure) for TDS defaults and simplify and rationalise compounding of such offences.
Besides, the two tax exemption regimes for charitable trusts will be merged into one.
–IANS
sps/dpb
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
