About 70% taxpayers may shift to new regime: CBDT chairman

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₹9.57 trillion after refunds in the current financial year, as of 9 October. This was 21.8% higher than the net collections made in the same time a year ago. Prior to refunds, the tax authority collected ₹11.07 trillion so far this year, nearly 18% more than what was collected at the same time a year ago.

Multiple factors including the use of technology and sharing information about the taxpayers’ transactions reported by various entities, with him in the annual information statement are helping in tax collection growth, the official said. Around 5.3 million new taxpayers have filed tax return by July this year. Gupta said that India has collected ₹600 crore so far this year as tax deducted at source (TDS) from the net winnings issued by online gaming platforms to players.

The union budget had widened the scope of TDS on net winnings from online games this year. TDS as a mode of tax collection has been becoming more important as the tax authority widens its oversight of economic activities. Gupta said that about 60-70% of the individual taxpayers will likely shift to the new personal income tax regime which is a beneficial provision.

Even if one’s tax is deducted as per the new regime by the employer, the taxpayer can choose between the old and the new regime at the time of filing the returns, said Gupta. The chairman said that corporations are using the new regime introduced for them in 2019 with lower tax rates and without tax exemptions. “The last data I had was that there was shift to the extent of 60% of (corporate) profits to the new tax regime in FY23.