CBDT sees 70% of individuals switching to new tax regime

About 70% of personal income taxpayers are expected to shift to the new tax regime, which has been sweetened in the FY24 union budget, Central Board of Direct Taxes (CBDT) chairman Nitin Gupta said.

Gupta said direct tax collections stood at Rs. 9.57 trillion after refunds in the current financial year, as of 9 October. This was 21.8% higher than the net collections made in the same time a year ago.

Prior to refunds, the tax authority collected Rs. 11.07 trillion so far this year, nearly 18% more than what was collected at the same time a year ago.

Several factors including the use of technology and sharing information about the taxpayers’ transactions reported by various entities, with him in the annual information statement are helping in tax collection growth, the official said. Around 5.3 million new taxpayers have filed tax return by July this year.