Why does the government want to end the old tax system? Girish Ahuja tells the real reason

Old tax system: The deadline for filing Income Tax Return (ITR) is only one day. Taxpayers file ITR very fast. In this, most of the people file ITR under the old tax system, some choose the option of the new tax system. Recently, in the budget tabled in Parliament on July 23, 2024, the government has raised the standard tax exemption limit from Rs 50,000 to Rs 75,000 and increased the tax bracket limit to around Rs 1 lakh under the new tax regime. With this move by the government, the question is whether the government wants to end the old system of taxation and because of that, does it not give the benefit of constant exemption, tax exemption? Why does the government want to abolish the old tax system? The answer to this question has been explained in very simple terms by Girish Ahuja, a member of the central government-constituted committee to reform direct taxes. One of his videos is going viral on social media. Most of the claims are under 80C and 80D, said Girish Ahuja, a member of the committee set up by the central government to reform direct taxes, in a video that has gone viral on social media, saying many have filed tax under 80C of Income Tax. They claim tax exemption while filing returns, claim 80D and don't deposit anything. This is because they do not have to provide any evidence for this. Everyone knows that 90 percent don't need to be investigated. So, this is the first thing people do while filing their return. Girish Ahuja Sir explains de-indexation effect with example and exemption u/s 54 & 54FSir ka. @akhilpachori) July 30, 2024 Second reason why 70 percent of income is showing fake HRA, 70 percent of income is fake HRA (House Rent Allowance). He said that most of the renters in RDR, some pay rent to father, some pay rent to brother, sister and relatives. People have even gone so far as to pay house rent to their spouses. He said people say, 'She won't let me in the house.' She says pay the house rent first. He said there is a judgment in it. There are two judgments as to why people take HRA. Also Read: Income Tax department advises heavy penalty for false expense claims in ITR, and Girish Ahuja says, 'Salary workers donate a lot . People say that Kabirdas said, 'He who receives the salary pays, no one else,' 'the bird took with its beak, and the river did not turn into water. Devotee Kabir said that the wealth donated should not decrease. He asked where the money went. He said that he had taken back what he had given and was deducting more than that. Then where did the money go? Wealth increased. This is why the government is focusing on abolishing the old tax system and introducing a new tax system. Also Read: ACMS Pharmaceuticals IPO Begins, Raises Rs 829 Crore From Anchor Investors The post Why Govt Wants To Abolish Old Tax System? Girish Ahuja tells the real reason appeared first on Prabhat Khabar.