New tax regime will allow people to have more money in their hands: FM

Finance Minister Nirmala Sitharaman on Saturday (February 11) said the new tax regime will benefit the middle class as it will leave more money in their hands.

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/her an opportunity to make a personal decision regarding investments.

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

However, no tax would be levied on annual income of up to ₹7 lakh.

Also read: New tax regime ‘sweetened’ to benefit maximum number of taxpayers: CBDT Chairman

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 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 per cent in 2023-24 and may fall further if crude prices remain benign.

Also read: Importance of personal savings ‘jettisoned’ in ‘hullabaloo’ over old, new tax regimes: Chidambaram

Das said RBI has assumed $95 per barrel rate of crude for inflation projection for the next fiscal.

On pricing of loans, Das said market competition will decide rates on lending and deposit sides as it has been a de-regulated segment.