Last updated: Feb 03, 2023 6:39 PM IST
Finance Minister Nirmala Sitharaman gave an exclusive interview to Network18 Editor-in-Chief Rahul Joshi. (Image: News18)
Nirmala Sitharaman expressed her hope that about 50 percent of the population will go over to the new regime.
Finance Minister Nirmala Sitharaman on Friday said she listens to classical music and sleeps soundly to unwind after a long day at work. She also hailed the vision of Prime Minister Narendra Modi, which continues to encourage the entire cabinet to work for the good of the country.
In an exclusive interview with Network18 Group Editor-in-Chief Rahul Joshi Sitaraman was asked how she unwinds after a long day working on the Union’s budget each fiscal year. To this she said: “I listen to music, mostly classical and Carnatic, and sleep soundly. We can work well thanks to our prime minister, who has a great vision for the country. We have a good prime minister under him who helps us all.”
Asked about the new tax regime and changes to the personal tax, Sitharaman said, “Prime Minister Modi has always wanted to keep the personal tax system simple. He believed that no huge documents were required. The Prime Minister has made it very clear that taxpayers need to know how much they are paying and feel comfortable.”
She also expressed her hope that about 50 percent of the population will switch to the new regime.
On Wednesday, Sitharaman said the government had made the new income tax regime more attractive to taxpayers and had made “substantial changes” to its structure to benefit the middle class.
The 2023-2024 budget proposes changes to the facultative tax regime that was introduced in 2020-2021.
Speaking to reporters after the presentation of the budget, she said it was a budget that perfectly balanced both growth considerations and financial management.
According to the changes proposed in the budget, the tax will not be levied on people with an annual income of up to 7 lakhs under the new tax regime, but it did not make a difference for those who continue to work under the old regime, which provides for tax credits and deductions. on investments and expenses such as HRA.
The Minister of Finance, in his budget for 2023-24, is considering a standard deduction of Rs 50,000 under the new tax regime, which is seen as a push for employees to move to a new tax regime that does not provide investment incentives.
The old tax regime provides for a similar deduction and no tax on income up to Rs 5 million.
Sitharaman said the government wants to make the new tax regime attractive enough that compliance should not be burdensome for taxpayers. However, if someone finds the old regime more profitable, he can stay in it.
“The ultimate interest is to make the simpler (new) mode more attractive,” Sitharaman said.
Under the updated new tax regime, there will be no tax on income up to Rs 3 million. Income between 3 and 6 lakhs will be taxed at a rate of 5 percent; Rs 6-9 lakh at 10 percent, Rs 9-12 lakh at 15 percent, Rs 12-15 lakh at 20 percent and income of Rs 15 lakh and above will be taxed at 30 percent.
(with the participation of PTI)
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