CBDT Reports 88% Individual Taxpayers Adopt New Regime; Old System Retained

About 88 percent of individual taxpayers in India have opted for the new tax regime, according to CBDT Chairman Ravi Agrawal. The government has no plans to phase out the old tax regime or introduce a sunset clause, allowing taxpayers to choose between the two systems. The new Income Tax Act, 2025, effective from April 1, 2026, will bring simplified forms, rules, and procedures to ease compliance. The shift to the new regime is expected to improve tax collections and reduce litigation.