ITR Filing 2024: Amidst this income tax return (ITR) filing season, there have been lots of developments on personal taxation front especially after the Union Budget. The Budget 2024 sweetened the new tax regime by offering more benefits through hike in Standard Deduction and changes in tax slabs. But taxpayers must note that these changes are applicable to your earnings for the ongoing fiscal year or the assessment year 2025-26, and it will not impact your current ITR filing.
Will the Old Tax Regime be scrapped?
Ahead of the Union Budget, speculations were rife that the Modi govt might scrap the Old Tax Regime altogether but that didn’t happen. Post Budget presentation, Finance Minister Nirmala Sitharaman was also asked if the Old Tax Regime would be abolished soon, to which she replied that no decision has been taken yet. But in her Budget speech, she gave indication that the New Tax Regime will be in focus for the government as there were no changes in the Old tax regime. The FM also said that about two-thirds of taxpayers have already shifted to the New Tax Regime.
Old Tax Regime to New Tax Regime in ‘transition stage’
Now, in a post Budget interview with PTI, CBDT Chairman Ravi Agrawal has said that 66% of taxpayers have already adopted the New Tax Regime in this 2024 ITR filing season. This transition marks a critical “transition stage” as more individuals embrace the revised tax structure, according to him.
The government’s data highlights that more and more people are now giving preference to the New tax Regime, which offers simplified tax rates even as fewer deductions and exemptions. As this trend continues, the government anticipates further shifts that could streamline the tax filing process and potentially increase compliance rates among taxpayers.
About 66% of taxpayers, out of the over 4 crore filers, have opted for the new tax regime for income tax return (ITR) filing during the current season so far, said the CBDT Chairman. Agrawal, in his interview with PTI, emphasized that the government’s focus, along with the direct taxes administration, is on the “simplification” of tax processes. This includes the filing of ITRs and other interactions with the Income Tax Department, aiming to make tax compliance easier and more efficient for taxpayers.
“The philosophy (of the government) is that the more you simplify, the more it will make it easy for people to comply leading to increased compliance. This is also reflected from the fact that, as on date, the number of returns (ITRs) that have been filed till yesterday is significantly more than the returns filed during the same time in the corresponding (last) year,” Agrawal said.
Also read: What happens if you file wrong ITR? Can you change income tax return after submission?
ITR filing numbers: Over 5.43 crore ITRs filed so far, over 2.36 crore returns processed
As on July 29, over 5.43 crore ITRs have been filed and more than 2.36 crore tax returns processed by the Income Tax Department, as per latest data published on the e-filing website.
About 7.5 crore ITRs were filed last year at the end of the deadline on July 31. The current ITR filing season for assessment year 2024-25 will also end on July 31 for different categories of taxpayers whose accounts are not supposed to be audited.