After the announcement of the new tax system in the general budget, it remains a matter of discussion repeatedly. Revenue Secretary Ajay Bhushan Pandey defended it saying that it is a system providing easy and alternative to taxpayers. The taxpayers will not need to monitor the savings scheme after its implementation. Under the new tax system, there will be an option of a lower tax rate for no exemption. However, choosing it or not will depend entirely on the taxpayer. He can also choose the old option if he wants.

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In the current tax system, many proofs have to be provided for exemption. The same includes documents such as insurance policies and house rent receipts. All these will not be required in the alternative tax system. With this, taxpayers will not have to take the opinion of experts. Pandey said that even a person who knows simple mathematics will be able to file his tax return with ease. The Revenue Secretary said that under the old system, a person's income is Rs 10 lakh and he gets benefits of up to Rs 1.25 lakh. He can also get benefits in the new tax system without providing any proof.

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Pandey said that such a system already exists in many big countries. There are 6-7 tax slabs in the same countries like America and Canada. From higher tax slabs trying to hide increased income will be lacking. If someone's income increases from 5% to 20%, then he tries to hide the income to avoid paying more tax. The new taxation will help discourage such efforts.

These factors helped Sensex nifty to recover of budget day loss