-
Feb 05, 2026
-
Old tax regime is not going to end soon: CBDT chairman rules out sunset clause for old regime
Ravi Agrawal, chairman of the Central Board of Direct Taxes (CBDT), has made it clear that the old tax regime is not going away anytime soon even though about 88% individual taxpayers have switched to the new regime. He mentioned that the Indian government is not considering a sunset clause for the old tax regime right now.
According to a TOI report, the CBDT chairman noted that the new income tax regime has gained significant traction among individual taxpayers, with about 88 per cent now filing income tax returns (ITRs) under the new tax regime. He also pointed out that taxpayers still have the choice between the two tax regimes, but the transition towards the new tax regime has been quite positive.
Sachin Garg, Partner, Nangia & Co LLP, had written earlier that pulling out the old tax regime immediately would be premature as it continues to serve taxpayers who claim allowances such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), deductions on interest paid for housing loans. deductions under Chapter VIA like 80C, 80D etc.
|