Around 5.5 Crore taxpayers, with the majority having incomes up to Rs 7 lakh, are estimated to have migrated to India's new tax regime for the current financial year, as per initial revenue department estimates. The revised tax regime, introduced in the budget for FY 2024, aimed to make taxation more attractive.
The changes appear to have appealed to many young taxpayers earning around Rs 7.5-10 lakh, seeking flexibility and simplicity. The final count of new regime adopters will be clear in the next assessment year, showing earnings and tax obligations. Taxpayers retain the option to revert to the old regime if preferred.
The exact number of individuals opting for the new tax regime would only become clear in the next assessment year 2024-25.