More than 8 Crore ITRs Filed for FY 2023-24: 74% Opt for New Tax Regime
Date: November 15, 2024
Category: Income Tax News
- Key Filing Statistics:
Over 8 crore Income Tax Returns (ITRs) were filed for the Assessment Year 2024-25, covering income earned in FY 2023-24.
74% of taxpayers opted for the New Tax Regime, amounting to over 5.92 crore returns.
- Updated ITR Filings and Additional Revenue:
Around 75 lakh updated ITRs were filed this year, contributing an additional tax revenue of ₹8,000 crore.
- New Tax Regime Highlights:
Introduced as the default regime for FY 2023-24.
Taxpayers can switch to the Old Tax Regime at the time of filing.
The New Tax Regime offers lower tax rates but excludes most exemptions and deductions (except for standard deductions on salary income and family pension).
- Comparison with Old Tax Regime:
The Old Tax Regime provides income tax exemption up to ₹2.5 lakh and includes various deductions and exemptions.
While still available, its appeal is decreasing due to the simplified rates of the New Tax Regime.
Significance
The growing shift towards the New Tax Regime reflects taxpayers’ preference for simplified taxation. However, it limits tax planning opportunities traditionally available under the Old Regime.
