There is a need to sweeten the new income tax regime to find takers.
The finance ministry is working to sweeten the two-year-old exemptions-free personal income tax regime by offering lower tax rates, a government official said, after the new system failed to click with taxpayers.
Alongside, the government may also phase out the older personal income tax regime, which offers several deductions and benefits. The move aims to simplify the income tax regime and reduce litigation, which is seen as complex amid several deductions and benefits available to taxpayers.
Exemption-free personal income tax slabs with lower rates were introduced as an option in the Union Budget 2020-21, but are yet to find acceptance in a big way.