Tax Relief and Reforms Promote New Regime Adoption

Finance Minister announced significant tax cuts, raising the exemption limit to Rs 12 lakh, prompting many taxpayers to adopt the New Tax Regime (NTR). CBDT Chairman highlighted simplified filing processes and non-intrusive administration, aiming to increase compliance and broaden the tax base with advanced technology and data analytics.

The recent Budget announcement heralds a new era for individual taxpayers as tax relief and systemic reforms encourage a shift to the New Tax Regime (NTR). Finance Minister Nirmala Sitharaman detailed notable tax reductions for the middle class, elevating the exemption threshold from Rs 7 lakh to Rs 12 lakh per annum.

Central Board of Direct Taxes Chairman Ravi Agrawal, in an exclusive PTI interview, shared that the Income-Tax Department's strategy is aimed at promoting compliance through simplified filing processes and a non-intrusive tax environment, leveraging advancements in Artificial Intelligence (AI) and data analytics.

Agrawal emphasized the government's focus on facilitating a broader tax base by tapping into various data sources. With these changes, Agrawal hopes more taxpayers will adopt the user-friendly NTR, contributing to overall economic growth as tax compliance positively impacts the fiscal landscape.

(With inputs from agencies.)