There will be no tax on income up to Rs 12 lakh, more than 90% taxpayers can adopt the new tax regime: CBDT Chairman..

Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal has said that after the announcement of changes in tax slabs in the budget, more than 90% of taxpayers can adopt the New Tax Regime. Right now this figure is close to 75%. He said that after the budget announcement of no tax on income up to Rs 12 lakh (12 Lakh Income Tax-Free) and changes in tax slabs (Income Tax Slabs Revised), more people will adopt the new tax system.

Emphasis on making the tax system easier

Ravi Agarwal said that the government and the Income Tax Department are trying to make sure that taxpayers face minimum problems and the tax system is more simple and digital. For this, Artificial Intelligence (AI) and data analysis are being used, which will ease tax filing (ITR Filing).

CBDT Chairman said that the new tax system is very simple for taxpayers. There is no deduction or exemption in this, which makes tax calculation easier. With this, taxpayers can file ITR themselves without the help of any expert.

Big relief for taxpayers in the budget

Finance Minister Nirmala Sitharaman announced in the Budget (Budget 2025) that in the new tax regime, there will be no tax on income up to Rs 12 lakh. Currently this limit was Rs 7 lakh. Also, a standard deduction of Rs 75,000 will also be given.

Apart from this, the tax slab of those with annual income up to Rs 25 lakh has also been changed, which will save them tax up to Rs 1.1 lakh every year.

Currently, 74-75% of taxpayers have adopted the new tax system, but according to the CBDT Chairman, this figure may exceed 90% next year. He said that the announcements made in this year's budget will provide great relief to the middle class and will benefit all taxpayers. Aggarwal said that these decisions will also benefit the country's economy. When people have more money left, they will spend more, which will grow the market and business and the economy will get direct benefit from it.

Use of new technology to increase tax collection

CBDT Chairman said that the government is using AI, data analysis, and digital systems more to increase the tax base. This will prevent fake tax deductions and wrong tax claims.

Last year, 90,000 taxpayers claimed wrong tax deduction, but later they had to pay Rs 1,000 crore tax by filing revised returns (Revised ITR).

The new tax regime has been made more attractive in the budget, so that more than 90% of taxpayers can adopt it. The government's goal is to simplify the tax system and taxpayers face fewer problems. This will strengthen the economy and also increase the government's tax collection.

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