Over 8 Crore ITRs Filed for AY 2024-25, 74% Opt for New Tax Regime

Over 8 crore income tax returns (ITRs) have been filed for the assessment year (AY) 2024-25, with 74% of taxpayers opting for the new income tax regime. This shift is largely attributed to the simplified structure of the new regime, which offers lower tax rates but eliminates most exemptions and deductions, except for a standard deduction on salary income and family pension. The new regime became the default option for taxpayers starting from the 2023-24 financial year. Additionally, around 75 lakh updated ITRs have been filed, bringing in an additional Rs 8,000 crore in taxes. The new tax regime is designed to make tax filing more straightforward, appealing to a significant portion of taxpayers looking for simplicity in tax computation. However, those with specific exemptions or deductions may still prefer the old tax regime. The shift to the new regime is expected to streamline tax processes and enhance compliance.