Over 60% of Taxpayers adopt New Income Tax Regime for FY 23

New Tax Regime: The government is doing a great job in making sure people pay their taxes on time and follow the rules. They made some changes to the tax system, and it seems to be working well. A lot of people – more than 80 million – have already filed their tax returns for the year 2023-24, which is way more than last year. Plus, the government has collected 29.4% more personal income tax from April to November.

Most people seem to like the new tax rules, but some experts say there could be even better changes. The first version of these rules, started in 2019-20, didn’t work so well because the tax rates were not as good as the old rules, which had more ways to reduce the taxes you owed.

Read Also: Here’s why Indian taxpayers prefer old income tax regime over new tax regime

New Income Tax Regime

The New Income Tax Regime updated rules, announced in the 2023-24 Budget, give people lower tax rates and let them earn more money before paying higher taxes. They also increased the basic exemption (which means you can earn some money without paying tax) and added more discounts, making it more attractive for everyone. Even rich people get benefits, with lower top tax rates and changes in extra charges.

What Experts Say for new regime

Some smart people have ideas to make the new tax rules even better. They say the highest tax rate should be lower, and you should be able to earn more money before paying higher taxes. They also suggest giving more discounts. While the new rules are good, these experts remind us that the old rules are still popular because they have extra ways to reduce taxes, like House Rent Allowance, Leave Travel Allowance, and 80C.

Read Also: New Income Tax Form 10IEA to Fill for Opting Old Tax Regime

What to Expect Next

As we get closer to the next Budget, some experts are not sure if the government will make more changes. Even though it could be simpler, they think big changes might not happen right now.

More people are following the new tax rules, and the government is happy because they are getting more money. But experts think there could be even better changes to make everyone happy with the tax system. Let’s wait and see what happens in the next Budget!

Read Also: New and Old tax Regime slab Rates for FY 2023-24 & FY 2022-23

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