Over 90% taxpayers may embrace new regime with new slabs: CBDT Chairman

The Budget announcement of zero tax for earnings up to 12 lakh rupees per annum and the rejig of tax slabs across the board should prompt more than 90 per cent of individual taxpayers to embrace the new tax regime, said CBDT Chairman Ravi Agrawal. 

He said the government’s philosophy and approach is to ensure a “non-intrusive” tax administration. He also cited the new tax regime (NTR), where there are no deductions or exemptions allowed like the old regime, which has “simple” calculations for a taxpayer, enabling them to file their ITR without the help of a



professional.

    

As of now, about 75 per cent individuals has opted the New Tax Regime.

     

The Central Board of Direct Taxes (CBDT) is the administrative body, under the Union finance ministry, for the I-T Department.

Finance Minister Nirmala Sitharaman yesterday announced significant income tax cuts for the middle class and declared that individuals earning up to 12 lakh per rupees year will not have to pay any taxes, raising this exemption threshold from 7 lakh rupees at present.