Finance Minister Nirmala Sitharaman today said that Budget proposals under the new income tax regime will leave more money in the hands of the people and it is up to to the taxpayer to decide where to put his money, rather than the government incentivizing or disincentivizing him to do so. In this year’s Budget, the finance minister announced a number of changes to the new tax regime, including reduction of number of tax slabs. To make it more attractive, standard deduction was also introduced in the new tax regime.
Talking to reporters after the customary post-Budget address to the central board of the RBI, she said it is not necessary to induce individuals to invest through government schemes but give them an opportunity to make a personal decision regarding investments.
“the way we allowed for standard deduction and also the rates which have been fixed, tax rates which have been fixed for different slabs, it has actually left more money in the hands of the people, the taxpayer, the household,” she said.
Sitharaman in her latest Budget proposed to extend the Rs 50,000 standard deduction benefit to persons opting for the new tax regime
“I don’t think it is necessary for the government to even induce any such measures. A person who earns his money and who runs his household is wise enough to know where he has to put his money…So I’ve not discouraged him from doing it nor am I incentivising them to do anything in particular. It’s for him to take a call,” she said.
Under the revamped concessional tax regime, which will be effective from the next fiscal, no tax would be levied on income up to Rs 3 lakh. Income between Rs 3-6 lakh would be taxed at 5 per cent; Rs 6-9 lakh at 10 per cent, Rs 9-12 lakh at 15 per cent, Rs 12-15 lakh at 20 per cent and income of Rs 15 lakh and above will be taxed at 30 per cent.
However, no tax would be levied on annual income of up to Rs 7 lakh.
Read more at : The Economic Times
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