Budget 2025: CBDT chief dismisses talk of silent burial for old tax regime, expects 97% shift to new system

Ravi Agarwal, Chairman of the Central Tax Council (CBDT), removed the speculations that the union’s budget announces the end of the old tax regime. Answering questions about its modernity, Agarwal stated. “As indicated, both tax regimes, and the option is with the taxpayer.

In interaction with Siddharth Zarabi, editor Business todayAgarwal admitted that the new tax regime offers more benefits, governed to simplify the system. “In the old tax regime, there are some reductions and negatures that are open to comments, making a complex of calculations. To solve it, the new tax regime sets a clear calculation of income tax, “he said.

He noted that this simplicity was resonated with taxpayers, about 74% of which has already adopted a new system. “I am convinced that the changes in this change have been made in changes in this change, more people will be offered to call on this issue,” he added.

To the question whether the expected exchange rate of adoption after the 2025 budget Agarval noted significant growth. “There are about 8.5 cavities separate taxpayers, and 75% of them have already chosen the new tax regime. Going ahead, that number must touch about 95-97%.

Discussing the bill on the new income tax, Agarwal reminded the earlier comments of the Minister of Finance Nirala Sitharaman on simplifying the act of income tax on the 1961 income tax. ” At that time we worked on it, and we are glad that we have been able to leave the bill, which will be presented to the parliament, “he said. The focus was on clarity and understanding. “The language is clear, the scope of the trial goes down, stimulating the ease of conducting business and better compliance,” Agarwal said.

The Minister of Finance highlighted that the new bill has reduced the amount of the act by about 50%, eliminating redundancy, outdated provisions and copies. “We have found some gaps and connected them. First of all, we are talking about honest taxpayers in the first place and later, “Agarwal said.

Approving the aggressive study, assessing the officers, Agarval stressed the government’s trust-based approach. “We have about 8.75 Crore Taxpayers, and in 99.5% of cases, we accept the return, as it is announced by taxpayers. This is the trust, “he said. For other cases, he clarified that the inspection is not arbitrarily, but based on data analysis and red flags.

Agarwal also makes detailed changes in the updated return concept. “Initially, taxpayers had two years to update the return. Now it has spread throughout the third and fourth years, “he explained. The statement came from this statement that it is to reduce unnecessary interrogation. “If we get information a year later, we show it in an annual information statement (AIS). If the taxpayer wants to do, there is no need for questioning. Let the taxpayer voluntarily be appropriate. “