Is the government betting that the richest taxpayers are going to get immensely richer next year?
Quite likely, if you look at the story behind the numbers.
In 2022-23, 2.9 crore individuals and HUFs (Hindu Undivided Families) paid income tax. Out of these, about 1.25 crore declared a pre-tax gross income of more than Rs 10 lakh in their IT returns.
It is safe to say that these people would have crossed the Rs 12 lakh income threshold by the time the new income tax rates kick in.
So, only these 1.25 crore taxpayers will end up paying taxes in 2025-26.