According to Revenue Secretary Sanjay Malhotra on Tuesday, July 30, about six crore income tax returns (ITRs) have been filed for income earned in 2023-24. Out of these, 70 per cent of taxpayers chose a new tax regime, said Malhotra.

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Currently, taxpayers have two personal income tax regimes to choose from. In the old income tax regime, the tax rates are relatively high but taxpayers can claim several exemptions and deductions. However, in the new tax regime, tax rates are lower but fewer deductions.

Addressing the post-budget session of PHD Chamber of Commerce and Industry, Malhotra said there were apprehensions as to whether people would shift to the simplified tax regime.
"About 6 crore filed for last year and 70 per cent 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 said.

For the 2022-23 fiscal, 8.61 crore ITRs were filed.

The idea behind comprehensive income tax review as announced in the Budget is to make the tax law simpler.

"We will come up with a draft and then we will seek suggestions," Malhotra said.

With agency inputs