Scrutiny to come down in new tax regime: Rev Secy

NEW DELHI: Revenue secretary Ajay Bhushan Pandey has said the new tax regime would lessen scrutiny, lessening paperwork for taxpayers. “Scrutiny should come down in the new tax regime,” Revenue Secretary Ajay Bhushan Pandey told ET.

Finance minister Nirmala Sitharaman announced a new tax regime with flat rates sans exemptions in various slabs in the budget.

In the new regime, 5% tax is proposed on an annual income between ?2.5 lakh and ?5 lakh. The tax rate rises to 10 %, 15%, 20% and 25% with every ?2.5 lakh addition. A 30% tax rate is proposed on incomes over ?15 lakh.

Typically, taxpayers are asked to furnish proof of investments and large spending during detailed scrutiny by the I-T department. The number of cases selected for scrutiny has come down over the years, but for it is expected to come down further.