FinMin expects at least 80% of taxpayers to move to new tax regime

The government introduced new tax slabs with reduced rates for an annual income of up to Rs 15 lakh for those foregoing exemptions and deductions under a simplified tax regime

The finance ministry expects at least 80 per cent of the taxpayers to move to the new income tax regime, Revenue Secretary Ajay Bhushan Pandey said on Friday.

The budget 2020-21 has introduced more tax slabs and offers higher limits provided the taxpayer is ready to forego all the existing exemptions and deductions including home loan interest, other tax savings investments.

"We feel at least 80 per cent of the people will come to the new scheme," Pandey said during an interaction with opinion makers in the financial capital.

He said the government did an analysis of 57.8 million taxpayers before the budget