FM says no income tax for people earning up to Rs 7.27 lakh per annum under new tax regime

economictimes.indiatimes.com:

Sitharaman on Friday said the Narendra Modi government has provided several tax benefits to middle class people, including income tax exemption for those earnings up to Rs 7.27 lakh per annum. Asserting that no section of the society has been left out by the government, she mentioned about skepticism in certain quarters when it was decided to provide income tax exemption for those earnings up to Rs 7 lakh in the Union Budget for 2023-24. The skepticism was about what will happen to those earnings little more than Rs 7 lakh, she noted.

«So, we sat as a team and went into the details (to find out) at what stage you pay tax for every additional Re 1 you earn… (for instance) for Rs 7.27 lakh, you don't pay any tax now. It is only at Rs 27,000 that the break even comes. After that you start paying tax.

»You have a standard deduction of Rs 50,000 also. Under the new scheme, the grievance was that there was no standard deduction. It is given now.

We have brought in the simplicity in the paying rate and the compliance side," Sitharaman said. Speaking about the achievements of the government, she said the total budget for the Micro, Small and Medium Enterprises (MSME) has increased to Rs 22,138 crore for 2023-24 compared to Rs 3,185 crore in 2013-14. This is a jump in budgetary allocation by almost seven times in nine years, symbolising the government's unwavering commitment to empower MSME sector, she said.