60% taxpayers should move to the new tax regime: CBDT Chairman

CBDT chairman Nitin Gupta says the income tax department expects a sizable chunk of people to opt for the new regime because it is beneficial to all, be it the small income earner and top income earner.

“For the top-income earner, the surcharge is reduced and for the low-income earner, the basic slab where no income tax will have to be paid is seven lakhs after rebate. If you account for the standard deduction, it becomes Rs 7.5 lakh. There will be gain to the taxpayer in between too. So we are of the view that 60% will be in the new regime and 40% could be in the old regime, which could be because of some reasons like some exemptions or deductions that they may be claiming,” says Gupta.