Tax burden on middle class reduced, Nirmala Sitharaman's reply on Budget

Nirmala Sitharaman: Finance Minister Nirmala Sitharaman defended the budget presented in the Lok Sabha for the financial year 2024-25, saying that its proposals have reduced the tax burden on the middle class. He said the government is fulfilling the expectations of the common man by exempting house and land from capital gains tax. Responding to questions raised during the debate on the Finance Bill 2024 in the Lok Sabha, he said the middle class has benefited from the 50 per cent reduction in the standard deduction in income tax. In real terms, this year's budget simplifies the tax system by increasing the tax rate, he said. Refusal to reduce GST on health insurance Before the implementation of GST (Goods and Services Tax) in 2017, states had taxed insurance premiums, Finance Minister Nirmala Sitharaman said on the Opposition's demand to reduce GST on health insurance premiums. He said the GST rates were not decided in Parliament. The matter will be taken to the GST Council. Two-thirds of these states are represented. Amendment to LTCG Tax LTCG (Long Term Capital Gain) Tax has been amended in the Finance Bill. Under this, indexation benefit i.e. effect of inflation on sale of properties purchased before July 23, 2024 has been restored. Now individuals or Hindu Undivided Families (HUFs) who purchased a home before July 23, 2024 can opt to pay LTCG tax under the new scheme. Without indexation, they have to pay 12.5 percent tax and with indexation benefit, they have to pay 20 percent tax. They can choose the option with lower tax rate. Finance Minister Nirmala Sitharaman said that from the first budget of 2019, the middle class traveled across the country and got advice from various parties and came here with amendments. General public. . The Finance Minister also said that the objective of the budget proposals for the financial year 2024-25 is to promote investments that will benefit the middle class. He said raising the exemption limit for long-term capital gains tax on listed equity shares and bonds from Rs 1 lakh to Rs 1.25 lakh would benefit the middle class investing in equity markets. Also Read: 7.22 crore people file ITRs in country as tomato prices rise Reduction of customs duty on various goods will increase trade and investment and create employment. He said taxpayers are currently giving priority to the new tax system. This trend is observed in one year. A total of 7.22 crore Income Tax Returns (ITRs) have been filed till July 31, 2024 for the assessment year 2024-25, he said. Of these, 5.25 crore or 72.8 percent opted for the new tax system. At the same time, the number of income tax return filers under the new tax regime for assessment year 2023-24 was 30.93 lakh. Also Read: RBI keeps interest rate unchanged for ninth consecutive time, repo rate at 6.5%, tax burden on middle class reduced, Nirmala Sitharaman's response to Budget appeared first on Prabhat Khabar.