The recent Union Budget 2024 has introduced significant tax cuts, encouraging more taxpayers to shift to the new tax regime (NTR). CBDT Chairman Ravi Agrawal believes that over 90% of taxpayers will opt for NTR, up from the current 75%.
Under the new rules, individuals earning up to ₹12 lakh per year will pay zero income tax, compared to the previous threshold of ₹7 lakh. The salaried class will also benefit from an additional ₹75,000 standard deduction.
Simplified Tax Filing Process
Agrawal emphasized that the new tax regime eliminates complex deductions and exemptions, making tax filing easier for common taxpayers. Key features include:
✔️ Pre-filled ITRs for easy filing
✔️ Automatic TDS calculations
✔️ No need for professional assistance
“For the common taxpayer, tax filing has become much simpler. The new regime offers straightforward calculations, reducing dependency on professionals,” said Agrawal.
AI-Driven Tax Administration
The Income Tax Department is leveraging Artificial Intelligence (AI) to ensure a non-intrusive tax system. AI helps:
🔍 Detect tax evasion
📊 Analyze taxpayer data
📩 Prompt taxpayers to file accurate returns
Agrawal stated that AI tools, along with human intelligence and electronic data tracking, are strengthening tax compliance.
Expanding and Deepening the Tax Base
To increase tax compliance, the government is:
📌 Identifying unreported income through data analytics
📌 Prompting taxpayers to correct errors in ITRs
📌 Encouraging voluntary compliance instead of harsh scrutiny
In 2023, around 90,000 taxpayers who wrongly claimed deductions revised their returns, contributing ₹1,000 crore in taxes. Additionally, 90 lakh individuals filed updated ITRs, adding ₹8,500 crore to government revenue.
Fighting Tax Evasion
Agrawal mentioned that the government is taking action against fraudulent tax deductions by collaborating with businesses and institutions.
“We advise employers to guide employees in correcting any mistakes in their returns. People are generally responding positively to this approach,” he said.
For those deliberately misguiding taxpayers, the I-T Department has launched search and survey operations to curb tax evasion.
Final Thoughts
With major tax relief, a simplified tax structure, and AI-driven compliance, the government expects 90% of taxpayers to transition to the new tax regime. The shift is seen as a win-win for both taxpayers and economic growth.