Finance Minister Nirmala Sitharaman said- New tax regime gives both money and options, 50 percent taxpayers will adopt it, old system…
highlights
The Finance Minister has increased the income tax exemption limit to 7 lakhs in the new tax regime.
The Finance Minister said, we have given people the option of a simple tax system.
Surcharge on high bracket tax has been reduced from 37% to 25%.
New Delhi. Finance Minister Nirmala Sitharaman (FM Nirmala Sitharaman) said in an exclusive interview to Network 18 Editor-in-Chief Rahul Joshi after presenting the Budget 2023-24 that the new tax regime has become more attractive now. He told News18 India that by making changes in income tax, we want to give both money and options to the people. It was started only three years ago, but now it is being made more attractive, so that simple and cheap tax system can be made available to the people.
The Finance Minister has made it very attractive by reducing the rates of the new tax regime in the budget and giving more income tax exemption. He said that people should get a choice as to what to do with their money. For this, it was very important to reduce the tax burden. This system was implemented only in 2019-20, but not many people liked the options at that time. Now this system has become very good and simple. I estimate that 50 percent of the taxpayers will adopt the new income tax regime. The Finance Minister has raised the income tax exemption limit to Rs 7 lakh in the new tax regime, which was earlier Rs 5 lakh.
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Started on the suggestion of PM Modi
Finance Minister Nirmala Sitharaman said that the brainstorming on the new tax regime started on the suggestion of Prime Minister Narendra Modi. He said that the people of the country do not know much about tax. His suggestion was that such a tax system should be created whose rules and regulations would not be difficult for the people to follow. Now taxpayers will not need to show any kind of investment or expenditure to get more tax exemption. Now we have given the option of a simple tax system to the people. It is expected that this time people will also like it.
Whether income is low or high, everyone benefits
In response to a question, the Finance Minister said that this time, by reducing the income tax rates, we have given benefit to the low and high earners. We have seen that one class pays a lot of tax, to give relief, the surcharge on high bracket tax has been reduced from 37 percent to 25 percent. That is, now the effective income tax rate has come down from 42 percent to 39 percent.
old tax system will also work
On the question of promoting the new tax system in the budget and not increasing the exemption on investment in the old system, he said that the old income tax system will also continue. Our aim is to put more money in the hands of people, so that they can decide for themselves where to invest. It is not necessary that people buy insurance products to save tax, they can invest for the future if they want and no tax will be charged on them.
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Tags: Budget, business news in hindi, FM Nirmala Sitharaman, income tax, income tax exemption, income tax slabs
FIRST PUBLISHED : February 03, 2023, 16:40 IST
