FM Sitharaman: “1 Kraor for taxpayers to obtain relief with no income tax on the income of 12 rupees for Cham”

Up to 1 crores for taxpayers will not have to pay the income tax through the new proposal in the Federation’s budget 2025-26, which will put a large amount of money in the hands of these individuals that the Minister of Union Finance Nermalla Sitraman on Saturday.

The Minister of Finance and Revenue, Tuhn Kanta Bandy, expressed his hope that all the money that these individuals earn will return from the tax opponent to the economy in the form of consumption, savings or investment.

In a step that it is seen in enhancing the demand for the consumption of a medium-class taxpayer, the Federation’s budget has suggested 2025-26 a large review of income tax panels under the new income tax system with a 30 % tax plate now on the income over the RS 24 for the year. FM also announced that there will be no income income tax of up to 12 rupees per year for the previous 7 rupees.

At all the center, it is seen that it gives up a rupee of revenue in direct taxes due to many direct tax proposals, including this. However, in the 26th fiscal year, income tax groups are seen at an altitude of 14.4 % to 14.38 rupees from the revised estimate of 12.57 rupees in the fiscal year 25.

Bandy, however, confirmed that growth is more modest than the previous fiscal year. In fiscal year 25, income tax groups are seen by 20 % while they grew 24 % in the 24th year. He said: “There is a moderate flood expected, given the sacrifice of revenues.”

About 75 % of the taxpayers have already moved to the new tax system and almost everyone is expected to turn to it now. However, the government ruled out the gradual disposal of the old tax system at the present time.

In his speech to a press conference after the federation’s budget was presented on Saturday, the Minister of Finance also stressed that the new income tax bill, which will be presented in Parliament next week, will be transferred to the permanent committee, which is likely to take place discussions with the owners discussions. She said, “I hope it will be passed without great difficulty,” without giving a schedule for its age.

She also explained that the new law is looking to simplify the current income tax law, 1961 by eliminating complications in the language, and the creditor method to explain and add many exemptions. However, after a year, any changes to alleviate the income tax still have to go to Parliament for approval.

The Minister of Finance also confirmed that there was no decrease in public spending or capital spending by the center.

Capital spending in the fiscal year is estimated at 10.18 rupees in the revised estimate of 11.1 rupees. In the 26th fiscal year, capital expenditures are estimated to grow by 10.1 % to 11.21 rupees.

“The elections were spoken. Both the center and the states were attached to spending in the third and fourth quarter … so it slowed down,” the Minister of Foreign Affairs indicated, adding that there is still a focus on capitalist spending, but it must depend on the actual development that contains an event on the ground.

The Minister of Economic Affairs, Ajay Seth, also indicated that the active unjust is still 4.3 % of GDP, and he stressed that there is no problem with the capacity. The new sectors such as urban development come. He also indicated that, along with grants in helping to create the estimated capital of 4.2 crushers for Cham in the fiscal year 26, the effective deep is 15 rupees of Cham.

Bandy highlighted that central public sector institutions will also spend about 4 CAPEX rupees from their own pockets.