New Tax Regime has slowly but surely gained taxpayers’ acceptance. Is this change here to stay?
The government's flagship, simplified New Tax Regime has slowly but surely gained tax payers' acceptance. In Assessment Year 2024-25, 72% of taxpayers opted for it. Is this change here to stay?
Print Edition: Feb 02, 2025
In with the New Tax Regime
Old or new-this ancient debate on the merits of the two has received a new twist in India’s personal income tax. Putting an end to the discussion on which system is better, 2024 marked an important year for the government’s flagship New Tax Regime (NTR). By July 31, 72.8 million Income Tax Returns (ITRs) were filed for Assessment Year (AY) 2024-25, marking a 7.5% increase from last year’s count of 67.7 million, per Press Information Bureau data. Out of that, 72% of taxpayers, or about 52.7 million people, chose the new system, marking a significant shift.
