CBDT chief says 88 per cent of particular person taxpayers have opted for brand new tax regime
He stated choosing a specific tax regime is the selection of the taxpayers, however the response to the brand new regime has been “superb”.
“I can inform you that when ITR 1, 2, 3 and 4 are taken collectively (earnings tax return types utilized by people), about 88 per cent of individuals have moved to the brand new tax regime.
“And insofar as presumptive tax circumstances, about 97 per cent of the taxpayers have moved to the brand new tax regime. For corporates, about 60 per cent of the earnings is now being mirrored within the new tax regime,” Agrawal instructed PTI throughout a post-Price range interview.
We imagine, he stated, with the brand new MAT (minimal alternate tax) provisions coming within the FY27 Price range, “it’ll additionally persuade individuals to maneuver to the brand new tax regime”.
MAT, meant just for firms, is calculated on the price of 15 per cent of ebook revenue and is chargeable solely when it’s greater than the tax on earnings. The Price range has proposed MAT to be the ultimate tax and has decreased the speed from 15 to 14 per cent for firms within the previous regime.
Requested concerning the hike in STT (securities and transaction tax) proposed within the FY27 finances, the CBDT chief stated it’s hoped that this may “actually dissuade retail traders from very aggressively taking over this train”. “Solely time would inform how a lot it could curb, however that is an try from the division and the federal government to really not less than deal with this subject and flag this subject,” he stated.
The Price range 2026-27 has proposed a rise in STT on futures contracts to 0.05 per cent from 0.02 per cent. STT on choices premium and train of choices are proposed to be raised to 0.15 per cent from the current price of 0.1 per cent and 0.125 per cent, respectively.
Agrawal stated he was assured about assembly the direct taxes assortment goal for the 2025-26 fiscal that has been revised to Rs 24.21 lakh crore within the Price range.
The previous tax regime refers back to the earnings tax calculation and slabs that existed earlier than the introduction of the brand new tax regime in 2020. The previous tax regime has increased tax charges, however taxpayers get the choice to assert varied tax deductions and exemptions. In distinction, the brand new regime gives decrease tax charges and permits full exemption for these incomes as much as Rs 15 lakh a yr.
