Srinagar, 13 February (CNI): Union Finance Minister Nirmala Seeta Raman has said that the new tax system will bring a lot of relief to people belonging to the middle class. Responding to the debate on the Union Budget 2023-24 in the Lok Sabha, Seeta Raman said the budget perfectly balances growth demands within the bounds of fiscal prudence.
According to Current News of India (CNI), Finance Minister Nirmala Seeta Raman on Monday said that the new tax system, which gives exemption on annual income up to Rs 7 lakh, will leave more income in the hands of the people.
Responding to the debate on the Union Budget 2023-24 in the Lok Sabha, Seeta Raman said the budget perfectly balances growth demands within the bounds of fiscal prudence. He said that the budget 2023-24 has mainly focused on the middle class, employment creation, MSME, agriculture sector, rural population, health and over all green development.
Seetaraman said the new tax regime announced in the budget is “very attractive” as the tax exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. Apart from this, a standard deduction of Rs 50,000 has also been allowed under the scheme. This new tax regime will benefit the majority of middle-class taxpayers, he said, adding that exemption has been provided on income up to Rs 7 lakhs, as the increased exemption limit is unconditional, it will put more income in the hands of people.
Under the revised concessional tax regime, which will come into effect from the next financial year, no tax will be levied on income up to Rs 3 lakh, the income of Rs 3 to 6 lakh will be taxed at 5%, 10% will be taxed at Rs.6-9 lakh, 15% at Rs.9-12 lakh, Rs.12-15 lakh at 20% and Rs.15 lakh or more at 30%.However, annual income up to Rs.7 lakh No tax will be levied.
Responding to RSP member NK Premachandran’s remark that the new tax regime would not benefit a person earning Rs 9 lakh per annum and investing Rs 4.5 lakh in tax-saving devices.
Seeta Raman said, “For a person earning Rs 9 lakh, it is not always possible to save Rs 4.5 lakh and then have enough money to spend on their family.”
The minister also said that the budget has maintained fiscal prudence as announced in the earlier fiscal guidelines.
“This is a very delicately balanced budget,” Seetha Raman said, adding that the government chose the capital expenditure route to revive the economy because it has a higher multiplier effect. (CNI)