Over 8 crore income tax returns filed for FY2024-25, majority opt for new tax regime

More than 8 crore income tax returns for the assessment year 2024-25 have been filed this year, with 74% of taxpayers opting for the new tax regime, according to a source. Additionally, around 75 lakh updated ITRs have been filed, generating an extra Rs 8,000 crore in taxes.

So far, over 8 crore individuals have filed their ITRs for income earned during the 2023-24 fiscal year, with more than 5.92 crore choosing the new income tax regime.

The new regime was established as the "default regime" from 2023-24, with the corresponding Assessment Year being AY 2024-25. Taxpayers may opt to change the regime when filing their ITR.

Eligible individuals without business income can choose the tax regime annually. However, the new regime does not offer various exemptions and deductions (other than the standard deduction for salary income and family pension) available under the old regime. The old tax regime continues to offer several exemptions and deductions, including tax exemptions for income up to Rs 2.5 lakh.