Income Tax News: Finance Minister Nirmala Sitharaman has hinted that in the event that the government led by Prime Minister Narendra Modi retakes power following the Lok Sabha elections, tax exemptions may be granted to taxpayers in the next budget, which is scheduled to be delivered in July 2024.
Finance Minister’s Response to Tax Rate Reduction Question
According to Moneycontrol When asked if the salaried class can anticipate a tax rate reduction in the July budget during an interview with Network18, the Finance Minister reportedly responded as follows, ” I do not know anything about this at this time. I want to say.”
Should the salaried class anticipate that the tax rates will eventually be unified after it was brought to the attention of the Finance Minister that the top rate of personal income tax is 30% while the corporate tax rate is only 22%? She Answered, “Direct Tax Reforms is an ongoing work.”
Minister’s Explanation on Tax Exemptions
During the press conference following the budget announcement on February 1, 2024, the Finance Minister was questioned over the decision to withhold tax exemptions and other populist policies. In response, she stated, “This is a vote on account.”
The interim budget that the Finance Minister unveiled on February 1, 2024, disappointed taxpayers. Before the elections, the taxpayers had hoped that the Modi government would reduce some of their tax burdens, but they were let down by the interim budget. Similar to the 2019 interim budget, there has been no rise in the regular price beyond Rs 50,000.
Anticipation for Modifications in Tax System
It was anticipated that the Finance Minister would introduce modifications to the new tax system in order to increase public acceptance of the income tax system; however, the interim budget contains no such measures. For any sort of relief, taxpayers will have to wait until the entire budget is released in July.
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