The government is anticipating reduced receipts from small savings schemes, with a growing number of taxpayers shifting to the new personal income tax regime that has eliminated the tax benefits associated with certain investments.
“In the current financial year (FY25), the inflows to small savings schemes, particularly public provident fund (PPF), may take a massive hit,” a government source told Business Standard.
In FY24, over 70 per cent of taxpayers opted for the new tax regime. This figure is expected to rise as the government has enhanced the new regime’s appeal by adjusting tax slabs and increasing the
