5.5 crore Indians may have opted for the new tax regime, says dept estimates
The new tax regime does away with many popular deductions like premium paid for health insurance, contributions to PPF, house rent allowance and more
More than 5 crore Indian taxpayers may have chosen the new tax regime this financial year, as per the initial findings of the revenue department. The main reason for this assumption, according to media reports, is that the majority of individuals have a taxable income of up to Rs 7,00,000. Notably, filing taxes for this income slab under the new regime is very easy.
Table 1 : Taxpayers in various income slabs
The new tax regime does away with many popular deductions like premium paid for health insurance, contributions to PPF, house rent allowance and more. However, it offers a lower tax rate, and will be considered as the default tax regime, unless one specifically do not opt for the old one.
Table 2 : Income tax slabs under new regime
The number of ITRs filed for AY 2023-24 also touched an all-time high of 67.7 million, jumping 16% over the number of ITRs filed last year.