Finance Minister Nirmala Sitharaman presented the first budget of Modi 3.0 on 23 July. Meanwhile, he made several big announcements, which included changes in the tax rate and increasing the standard deduction. He made this change under the new tax regime, whereas no exemption was given in the old tax regime. While talking to Aaj Tak on Thursday regarding the budget, the Finance Minister has asked why the exemption in the Old Tax Regime was not increased?
Finance Minister Nirmala Sitharaman said on Thursday that this budget has been a budget to provide relief to the middle class. He said that relief has been given to the middle class by reducing the income tax rate and standard deduction. Apart from this, subsidy has also been announced on loans up to Rs 10 lakh for students for higher education. In such a situation, this is a big relief.
Why no exemption in old tax regime?
Speaking on a question of tax exemption, the Finance Minister said that by giving only tax exemption, we are not giving big relief, but all-round relief. We have always been trying to reduce taxes. He further said that we did not think it right to reduce taxes in the old tax regime. That’s why we came up with the New Tax Regime and will continue to increase the exemptions in the future.
If you are earning then it is necessary to pay tax
Finance Minister Nirmala Sitharaman said that people should fulfill their duty towards tax liability. He said that more and more people should pay taxes. For this, things like TDS, TCS were introduced, because when you go to claim this, you come under the tax net.
He said that there are many people who do not come under the tax net, but afford expensive cars and luxury items. The Finance Minister said that if you are earning well then you should fulfill your duty towards the country by paying taxes.