No income tax till Rs 7.27 lakh per annum under new tax regime: FM Sitharaman
‘The complaint under the new structure was that there was no standard deduction. ‘It is now given,’ FM says.
Union Finance Minister Nirmala Sitharaman said in Udupi on Friday that the Narendra Modi government has granted various tax breaks to the middle class, including income tax exemption for those earning up to Rs 7.27 lakh per year.
Asserting that the government has not excluded any segment of society, she cited scepticism in some quarters when it was decided to grant income tax exemption for people earning up to Rs 7 lakh in the Union Budget for 2024-24.
She was sceptical about what would happen to those profits of less than Rs 7 lakh.
“So, we sat together as a group and dug into the specifics (to figure out) when you pay tax for every additional Re 1 you make… For example, you don’t have to pay any tax on Rs 7.27 lakh right now. The break even point is barely around Rs 27,000. After that, you must begin paying taxes.
“You also have a standard deduction of Rs 50,000.” The complaint under the new structure was that there was no standard deduction. It is presently given. “We have simplified the paying rate and the compliance side,” Sitharaman stated.
Speaking about the government’s accomplishments, she stated that the entire budget for Micro, Small and Medium Enterprises (MSME) has climbed to Rs 22,138 crore for 2024-24, up from Rs 3,185 crore in 2013-14.
This represents an almost sevenfold increase in budgetary allocation in nine years, she said, demonstrating the government’s unwavering commitment to empowering the MSME sector.
She stated that under the ‘Public Procurement Policy for Micro and Small Enterprises’ initiative, MSMEs accounted for 33% of total procurement made by 158 Central Public Sector Enterprises, the highest ever recorded.
“We launched the TReDS platform (Trade Receivables Discounting System) so that MSMEs and other corporations do not face a liquidity crisis as a result of nonpayment by their buyer,” she explained.
Sitharaman stated that the ONDC (Open Network for Digital Commerce) has helped MSME enterprises to reach out to a bigger potential client base and that the world respects India’s establishment of a public platform equivalent to the ‘Amazons of the world’.
The minister noted that India’s efforts to improve the ease of doing business have been recognised on a global scale, noting that the country’s ranking in the World Bank’s Ease of Doing Business Index has risen from 142 in 2014 to 63 in 2019.
“By repealing over 1,500 archaic laws and nearly 39,000 compliances, we have reduced unnecessary compliance burden.” “The Companies Act has been decriminalised,” she noted.
In addition, the Finance Minister dedicated the Common Facility Centre (CFC) at the Indian Institute of Gems and Jewellery (IIGJ) in Udupi.
Sitharaman lay the foundation stone for IIGJ in Udupi in 2017, while acting as Commerce and Industries Minister. Her MPLADS (Members of Parliament Local Area Development Scheme) funding were used to establish the facility, which also received backing from the Gem & Jewellery Export Promotion Council and the National Institute of Design, Ahmedabad.
The institute will instruct the region’s youngsters in many facets of handcrafted jewellery production.
Sitharaman had earlier visited Adamar Mutt and Sri Krishna Temple in Udupi.
PTI provided input.
