70 percent people have adopted the new regime. The Revenue Secretary said, only one regime is right. Currently there is an option of 2 tax regimes in the country.
New Delhi. If you also buy investment and insurance products to save income tax, then soon all this planning will go in vain. At least a senior government official has indicated so. If this official is to be believed, then in the coming time only one tax regime will remain in the country. It is obvious that if it comes to keeping one regime, then the government will implement the new tax regime and the old tax regime will be completely abolished. If this happens, then all your planning to save income tax through insurance and investment will also go in vain.
In fact, Sanjay Malhotra, Secretary of the Revenue Department under Nirmala Sitharaman’s Finance Ministry, has said in a program that there should be only one tax regime in India, not two. His statement has come on the basis of those figures, which say that so far 70 percent of taxpayers have filed their ITR under the new tax regime. This figure shows that taxpayers want to adopt a simple and low-slab income tax system.
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What did the Revenue Secretary say
In a program organized by PHD House of Commerce and Industry, the Revenue Secretary said that currently taxpayers get two options. New and old tax regime. In the old regime, the tax rate is high, but many types of tax exemptions are available. In the new regime, the rate is low, so tax exemptions are not available. We want to simplify the Income Tax Act and right now it is a voluminous document of 1,600 pages. Removing the old rules which are no longer practical is our priority.
1% increase in tax on real estate
The secretary said, this time in the budget, the long term capital gain tax on the real estate sector has been increased by only 1 percent. Last year it was effectively 11.54 percent, which has now become 12.5 percent. You know that the government has abolished the benefit of indexation relative to inflation and has reduced LTCG on property from 20 percent to 12.5 percent. This has increased the tax burden on selling old properties. On this, the Revenue Secretary said, we studied 10.5 lakh ITRs filed last year and only after that we have taken this decision.
Tax is necessary for a developed India
The Revenue Secretary said that we have simplified the tax system and ensured its compliance and it has shown a huge jump of 40 percent in comparison to GDP. The budget has also been prepared with the aim of developing a developed India by 2047 and for this, tax is necessary. Our aim is to end disputes and increase revenue by simplifying the tax law.
Tags: Business news, Income Tax, Income Tax exemption
FIRST PUBLISHED : July 31, 2024, 13:05 IST