Finance Minister Nirmala Sitharaman Follow @nsitharaman made a historic announcement regarding the new tax regime, which will be effective from the next fiscal year. The new tax policy is aimed at boosting the disposable income for the middle class, giving them more money to manage their finances and make personal investment decisions.
The FM said the new regime will leave more money in the hands of middle class.
Revamped Concessional Tax Regime
Under the new tax regime, the following tax slabs have been announced:
- No tax levied on income up to ₹3 lakh
- Income between ₹3-6 lakh taxed at 5%
- Income between ₹6-9 lakh taxed at 10%
- Income between ₹9-12 lakh taxed at 15%
- Income between ₹12-15 lakh taxed at 20%
- Income above ₹15 lakh taxed at 30%
- Additionally, no tax will be levied on an annual income of up to ₹7 lakh.
Also Read: RBI raises repo rate by 25 basis points to 6.5% from 6.25% : The Projected Growth 6.4% For FY24
"Experts in their Domain"
When asked about the Adani Group(What is Adani Group famous for?)controversy, Minister Sitharaman reassured the public that experienced Indian regulators were closely monitoring the situation and were "on their toes" to address any concerns. Regarding the regulation of crypto assets, the Minister stated that India was in discussions with G20 nations(List of G20 summits) to design a common framework.
Inflation Projections and Loan Pricing
RBI Governor Shaktikanta Das stated that retail inflation was expected to be around 5.3% in 2023-24, which may fall further if crude prices remain stable. The RBI has assumed a USD 95 per barrel rate of crude for inflation projection for the next fiscal. When it comes to loan pricing, Mr. Das stated that market competition will determine the rates on the lending and deposit sides, as it has been a deregulated segment.
In conclusion, the new tax regime aims to provide financial relief to the middle class and increase their disposable income(What Is Disposable Income),while ensuring regulatory oversight in other sectors. The policy is a step towards a brighter financial future for the people of India.
Also Read: Key Highlights of the Union Budget 2023-24
