Ajit Karn
Nirmala Sitharaman, the finance minister, said on Friday that the new tax law, which allows a refund on yearly income up to 7 lakh rupees, would give people more discretionary cash.
Nirmala Sitharaman responded to the Lok Sabha’s consideration of the 2023–24 Union Budget by stating that the Budget skillfully strikes a balance between the need for development imperatives and the bounds of budgetary responsibility.
The middle class, job creation, MSME, agri sector, rural population, health, and green growth, according to her, are the budget’s main priorities.
The tax exemption level has increased from 2.5 lakh to 3 lakh, making the new tax system unveiled in the Budget “extremely appealing,” according to Nirmala Sitharaman. A standard deduction of 50 000 has also been made available under the programme.
According to her, the bulk of middle-class taxpayers would profit from this new tax structure since the refund is available on incomes up to 7 lakh.
Because the expanded refund ceiling is unconditional, Sitharaman said that it gives individuals more spare cash.
No tax will be assessed on income up to Rs. 3 lakh under the revised concessional tax system, which would take effect in the next fiscal. Income between 3-6 lakh would be subject to a 5% tax; 6-9 lakh to a 10% tax; 9-12 lakh to a 15% tax; 12-15 lakh to a 20% tax; and 15 lakh and above to a 30% tax.
On yearly income of up to 7 lakh, however, there would be no tax.
Also read:- Shares of Spotify go up after news comes out that activist investor ValueAct is buying shares.
Nirmala Sitharaman responded to RSP member NK Premachandran’s statement that the new tax regime will not be advantageous for a person earning $95,000 per year and having invested $4.5 lakh in tax savings instruments by saying that it will be a “effort-ridden exercise” for someone to save that amount of money.
According to Nirmala Sitharaman, “For a person earning 9 lakh, it’s not always viable to have 4.5 lakh as savings and yet still have enough money to spend on your family.”
The minister said that the budget maintained the budgetary restraint that had been promised in the preceding fiscal glide path.
Nirmala Sitharaman stated, “It is a very, very finely balanced Budget,” adding that the government decided to boost the economy via capital spending since it has a bigger multiplier impact.
