ITR Filing Trend Report: 85% taxpayers opted for old tax regime and other key details
Nearly 10 per cent of taxpayers took no advantage of the Section 80C deductions. Only 55 per cent of taxpayers fully utilised the Rs 1.5 lakh deduction limit, with another 10 per cent claiming the deductions between Rs 1 to Rs 1.5 lakh.
More than 85 per cent of taxpayers are still continuing to opt for the Old Tax Regime over the New Tax Regime, according to a trend report from the online tax filing platform Clear (formerly ClearTax). Most taxpayers still opt for the old regime for its host of deductions though an increasing number are going for the newer regime due to the lower tax rates. The trend report was based on Income Tax Return (ITR) filing data from the platform’s 5 million registered taxpayers and over 1 million tax professionals.
Data from the Income Tax Department showed that a total of 6.77 crore ITRs were filed for AY 2023-24, which corresponds to the FY 2022-2023, by July 31, 2023. The total number of returns increased 16.1 per cent year-on-year.
Popular deductions and utilisation rates
Some other interesting trend regarding deductions under various sections of the Income Tax Department also came to light from the Clear report.
Nearly 10 per cent of taxpayers took no advantage of the Section 80C deductions. Only 55 per cent of taxpayers fully utilised the Rs 1.5 lakh deduction limit, with another 10 per cent claiming the deductions between Rs 1 to Rs 1.5 lakh. Another 17 per cent of taxpayers claimed up to Rs 50,000 deductions under Section 80C, as per the Clear ITR filing analysis.
Around 50 per cent of users of Clear used the deductions for medical insurance under Section 80D and another 20 per cent of users took advantage of self-contributions towards the National Pension Scheme under 80CCD(1B), which provided an additional deduction of up to Rs 50,000.
Demographic split
According to the trend report, the majority of taxpayers, nearly 50 per cent, belonged to the age group between 31 and 40 years. The second largest demographic was individuals up to age 30 at 28 per cent. Those aged 41 to 50 counted comprised 16 per cent and those above 50 years constituted 7 per cent of the taxpayers, highlighted in the report. In terms of gender ratio, over 70 percent of the taxpayers were male.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
02:14 PM IST