Mint Quick Edit | Sitharaman’s income tax bonanza: Time to rejoice
Subscribe to enjoy similar stories. India’s middle class has reason to rejoice. Finance minister Nirmala Sitharaman has eased income tax burdens under the new regime across the board.
The threshold level for zero income tax, for instance, has been bumped up to ₹12 lakh annually from ₹7 lakh. That’s quite a leap. Those with higher income will also see their tax liability go down considerably, thanks to tax slabs having been both raised and spaced apart.
Annual income above ₹24 lakh puts one into the 30% bracket now, up from ₹15 lakh. As an example, Sitharaman said that an individual with income of ₹25 lakh would now be left with ₹1.1 lakh extra in hand. The budget also proposed easing tax deduction at source (TDS) and tax collection at source (TCS) requirements.
A bill for a simplified tax law is expected next week. Hopefully, this will institute a taxation system that’s widely comprehensible. In 2025-26, the government expects to forgo ₹1 trillion on account of its direct-tax relief.
The idea, of course, is to lift consumer spending by the middle class. With a brighter outlook on retail sales trends, perhaps businesses would be inclined to invest more. Thus, the fiscal stimulus imparted can have far-reaching effects in support of GDP growth.
Read more on livemint.com
