Record ITR Filings: 74% Opt for New Tax Regime in AY 2024-25

Over 8 crore income tax returns have been filed for AY 2024-25, with 74% of taxpayers choosing the new tax regime. Around 75 lakh updated ITRs generated an additional Rs 8,000 crore in taxes. The new regime, default from 2023-24, offers fewer exemptions compared to the old regime.

In a significant development, over 8 crore income tax returns for the assessment year 2024-25 have been filed this year, according to a well-placed source. Notably, 74% of taxpayers have opted for the much-discussed new tax regime.

This year has also seen around 75 lakh updated ITRs being submitted, contributing additional taxes amounting to Rs 8,000 crore. The figures highlight a significant trend towards the new regime.

The new tax rule, which became the default system from the fiscal year 2023-24, differs from the old regime by offering fewer exemptions and deductions. However, eligible individuals without business income can choose their preferred regime for each financial year.

(With inputs from agencies.)