New Tax Regime Wins Over Majority of Individual Taxpayers
88% of individual taxpayers have shifted to the new tax regime, with the government refraining from introducing a sunset clause for the old regime. The shift reflects a favorable response, as MAT provisions in the FY27 Budget encourage movement to the new regime. Revised STT aims to curb aggressive retail investing.
- Country:
- India
According to CBDT Chairman Ravi Agrawal, 88% of individual taxpayers have transitioned to the new tax regime, indicating a positive reception. The government currently has no plans to introduce a sunset clause for the old tax regime.
The Budgets' new MAT provisions are designed to further persuade individuals and corporations to adopt the updated tax system. Agrawal relayed confidence in achieving the revised direct tax collection target of Rs 24.21 lakh crore for 2025-26.
Additionally, the FY27 Budget proposes an increase in securities and transaction tax (STT) rates, with the objective of curbing aggressive retail investment activities.
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