Modi Govt Has Clear Spirit About Empowering People: FM

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Last Updated: January 07, 2023, 20:13 IST

Finance Minister Nirmala Sitharaman. (File PTI photo)

Finance Minister Nirmala Sitharaman. (File PTI picture)

The minister additional mentioned the non-obligatory revenue tax regime with seven tax slabs was introduced in by the federal government to make sure decrease charges for these within the low revenue bracket.

The Modi authorities has a transparent spirit about empowering individuals by giving them basic necessities to assist them enhance their dwelling, Finance Minister Nirmala Sitharaman has mentioned.

“There’s a transparent spirit on this govt about what’s empowerment versus what’s entitlement. If you’re taking a look at empowering individuals, there’s no entitlement. You give them basic necessities and other people then discover their very own course to enhance their dwelling,” she said at a book launch event on Friday.

The minister further said the optional income tax regime with seven tax slabs was brought in by the government to ensure lower rates for those in the low income bracket.

Sitharaman said in the old tax regime, every tax assessee can claim about 7-10 exemptions and the income tax rates vary between 10, 20, and 30 per cent, depending on income threshold.

The minister said along with the old tax regime, the government has come up with a parallel system which has no exemptions, but with simpler and more favourable tax rates.

“The reason why I had to bring in seven slabs was to make simpler and lower rates for those who are in the lower income (bracket),” Sitharaman mentioned.

She was talking at an occasion to launch the guide ‘Reform Nation’, authored by Observer Research Foundation Vice President Gautam Chikarmane.

The authorities in Budget 2020-21 launched the non-obligatory revenue tax regime, beneath which people and Hindu Undivided Families (HUFs) had been to be taxed at decrease charges if they didn’t avail specified exemptions and deductions like home hire allowance (HRA), curiosity on dwelling mortgage and investments made beneath Section 80C.

Under this, whole revenue as much as Rs 2.5 lakh will probably be tax exempt.

A 5 per cent tax is levied on whole revenue between Rs 2.5 lakh and Rs 5 lakh, 10 per cent on Rs 5 lakh to Rs 7.5 lakh, 15 per cent on Rs 7.5 lakh to Rs 10 lakh, 20 per cent on Rs 10 lakh to Rs 12.5 lakh, 25 per cent on Rs 12.5 lakh to Rs 15 lakh, and 30 per cent on above Rs 15 lakh.

Under the outdated tax system too, revenue as much as Rs 2.5 lakh is exempt from private revenue tax. Income between Rs 2.5 lakh and Rs 5 lakh attracts 5 per cent tax, whereas that between Rs 5 lakh and Rs 10 lakh is levied with 20 per cent tax. Income above Rs 10 lakh is taxed at 30 per cent.

Sitharaman mentioned the “positive aspects of simplicity” of the old tax regime have not been reversed as the new exemption-free tax regime is just a parallel form of IT return filing system.

The Minister said to remove harassment, the tax department has also come out with faceless assessment of income tax returns.

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(This story has not been edited by News18 employees and is revealed from a syndicated information company feed)

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