New Tax Regime: After the change in the new tax system by the government, there has been a tremendous increase in the number of taxpayers adopting it. About 5.5 crore taxpayers have chosen this option.
New Tax Regime vs Old Tax Regime: There has been a huge increase in the number of people opting for the new tax regime in the financial year 2023-23. Under the new tax system by the government, now no tax is to be paid on income of Rs 7 lakh. In such a situation, taxpayers are liking this option. According to the report of Business Standard, in the current financial year, about 5.5 crore people have opted for the new tax system. Talking to the newspaper, a government employee informed that more of these people are those whose annual income is up to Rs 7 lakh.
Getting popular among young taxpayers
Significantly, in this report it has also been claimed that the new tax regime is becoming most popular among young taxpayers. Talking to Business Standard, a senior official has informed that out of 5.5 crore taxpayers, the largest number are of young people, whose salary is between Rs 7 lakh and Rs 10 lakh. It is worth noting that under the new income tax regime, income of Rs 7 lakh is tax free. Along with this, taxpayers get an additional discount of Rs 27,000. In this case, the tax exemption limit is up to 7.27 lakhs.
Many changes were made in the budget 2023
It is worth noting that in Budget 2023, Finance Minister Nirmala Sitharaman had made many major changes in the new tax regime, giving great relief to taxpayers and made income up to Rs 7 lakh tax-free. On the other hand, if we talk about the old tax regime, the government has not made any changes in it. In such a situation, people are liking the new tax regime very much. The official also informed that the exact figure of how many people have adopted the new tax regime in this financial year will be known only in the next assessment year (2024-25).
According to the report of Business Standard, in the financial year 2023, the income of 4.84 crore people is up to Rs 5 lakh. While the number of people with an income of Rs 5 to 10 lakh is Rs 1.12 crore, while those with an annual income of Rs 10 to 20 lakh are 47 lakh. The number of people with income between Rs 20 to 50 lakh is 20 lakh. The number of people with income between 50 lakh to 1 crore is 3.8 lakh and the number of taxpayers with annual salary of more than 1 crore is only 2.6 lakh in the country.
