New tax regime to benefit middle class; leave more money in their hands: FM

Under the revamped concessional tax regime, which will be effective from the next fiscal, no tax would be levied on income up to Rs 3 lakh.

Published: 11th February 2023 02:17 PM  |   Last Updated: 12th February 2023 09:27 AM   |  A+A-


Union Finance minister Nirmala Sitharaman. (Photo | Shekhar Yadav, EPS)

By Express News Service

MUMBAI: The new tax regime will benefit the middle class as it will leave more money in their hands, said Finance Minister Nirmala Sitharaman on Saturday.Talking to reporters after the customary post-Budget address to the Central Board of RBI, she said it is not necessary to induce individuals to invest through government schemes but give him an opportunity to make a personal decision regarding investments.

“I don’t think it is necessary for the government to even induce any such measures. A person who earns his money and who runs his household is wise enough to know where he has to put his money...So I’ve not discouraged him from doing it nor am I incentivizing them to do anything in particular. It’s for him to take a call,” she said.

Under the revamped concessional tax regime, which will be effective from the next fiscal, no tax would be levied on income up to Rs 3 lakh. Income between Rs 3-6 lakh would be taxed at 5%; Rs 6-9 lakh at 10%, Rs 9-12 lakh at 15%, Rs 12-15 lakh at 20% and income of Rs 15 lakh and above will be taxed at 30%. However, no tax would be levied on annual income of up to Rs 7 lakh.

Answering a question on the Adani Group crisis, the Minister said, “Indian regulators are very, very experienced and they are experts in their domain. The regulators are seized of the matter and they are on their toes as always not just now.”On regulating cypto assets, she said India is in discussion with G20 nations for designing a common framework.

Responding to a query on price rise, RBI Governor Shaktikanta Das said retail inflation is expected to be around 5.3% in 2023-24 and may fall further if crude prices remain benign.He said RBI has assumed $95 per barrel rate of crude for inflation projection for the next fiscal.On pricing of loans, the governor said market competition will decide rates on lending and deposit sides as it has been a de-regulated segment.


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