During her speech, FM Sitharaman said, Over the last ten years, the direct tax collections have more than trebled and the return filers swelled to 2.4 times. I would like to assure the taxpayers that their contributions have been used wisely for the development of the country and welfare of its people. I appreciate the tax payers for their support.
“The Government has reduced and rationalized tax rates. Under the new tax scheme, there is now no tax liability for tax payers with income up to ₹ 7 lakh, up from ₹ 2.2 lakh in the financial year 2013-14. The threshold for presumptive taxation for retail businesses was increased from ₹ 2 crore to ₹ 3 crore.”
Similarly, the threshold for professionals eligible for presumptive taxation was increased from ₹ 50 lakh to ₹ 75 Lakh, she added.
Reacting to the announcement, Akhilesh Gupta, Chief Investment Officer, Aviva India, said, “The unexpected reduction in the projected fiscal deficit for FY 25, standing at 5.1%, is indeed a positive turn of events. This development is poised to contribute favourably to the stabilization of interest rates at a lower threshold, thereby enhancing and fortifying the virtuous business cycle in India.”
The middle class was eagerly awaiting some income tax reforms that would enable them to curtail their tax outgo.
The full budget will be presented in July by the incoming government, whether a re-elected or new one.
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Published: 01 Feb 2024, 01:06 PM IST