Union Finance Minister Nirmala Sitharaman on Friday said the new tax regime will leave higher disposable income in the hands of people.
Replying to the debate in Lok Sabha on the general budget on Friday, she said government’s efforts to recover the economy after pandemic have been through the capital expenditure route.
Replying to a query of a member who had cited figures about tax saving from the old tax regime, she said saving ₹ 4.5 lakh from an income of ₹ 9 lakh will be effort-ridden exercise.
“Since the enhanced rebate limit is unconditional, it leaves higher disposable income in the hands of people,” Sitharaman said.
In her Budget document presented on February 1, the Finance Minister made major announcements relating to the personal income tax. The rebate limit in the new tax regime has been increased to ₹ 7 lakh.
The tax structure in the new personal tax regime has been changed by reducing the number of slabs to five.
The new income tax regime has been made the default tax regime. However, the citizens will continue to have the option to avail the benefit of the old tax regime.
Read more at : NDTV
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