Major changes in the new tax regime: Central Board of Direct Taxes Chairman Ravi Agarwal has said that the announcement of non-tacisation of annual income up to Rs 12 lakh in the Union Budget and changes in all tax slabs may motivate more than 90 per cent taxpayers to adopt the new tax regime. So far, the figure is around 75 per cent.
Agarwal said that the vision of the government and the income tax department is to ensure non-interference tax administration in the country through better use of artificial intelligence besides regular human intelligence mobilisation. The tax procedures available for a common taxpayer to report their income are not very complicated.
It will be easy to file income tax return
He gave the example of simplified (income tax return) ITR-1, pre-filled income tax return, automatic calculation of tax deduction at sources (TDS) etc. He also cited the new tax regime which does not allow any deductions or exemptions like the old system. It has simple calculations to help the taxpayer file their ITR without the help of a professional. The Central Board of Direct Taxes is an administrative body for the Income Tax Department under the Ministry of Finance.
Improvement is needed to move forward
However, Agarwal acknowledged that there is always room for improvement and this is true in every field. It also includes complex business structures. But, overall I would say that things have been made very simple for the general taxpayer. The announcements made in the budget regarding the payment of income tax will motivate more and more taxpayers to opt for the new tax regime.
More than 90 percent taxpayers will adopt it
Even if there are not 100 percent taxpayers, at least next year, we may see 90 percent or maybe more taxpayers who can adopt the new tax regime. According to current data, about 74-75 percent of individual taxpayers have stepped into the new tax regime. This system was introduced by the government a few years ago.
Agarwal asserted that the budget provisions related to income tax payment will not only benefit those who earn Rs 12 lakh per year but will benefit everyone.
He said the idea behind these judgements was basically in the interest of the middle class and was giving them substantial relief. All these things create a very positive feeling in the economy and this in itself promotes growth. So, when there is growth people consume and also spend and then the economy grows.
