Budget 2022 exclusive: FM Sitharaman backs no change in income tax rates
In an exclusive interview with Rahul Joshi, Editor-in-Chief, Network18, FM Nirmala Sitharaman defended the move to keep the income tax slabs unchanged and said tax stability and predictability are crucial at this point in time.
The Union Budget 2022-23 presented by Finance Minister Nirmala Sitharaman on Tuesday left the salaried class disappointed as tax slabs and rates were left unchanged. In an interview with Rahul Joshi, Editor-in-Chief, Network18, Sitharaman defended the move and said tax stability and predictability are crucial at this point in time.
"Tax stability and predictability are at least making sure people's plans remain unaffected," the Finance Minister said.
Sitharaman said there are ways in which demand creation can happen.
"In India, where taxpayers number and profile is seen then you realise it is possible to provide stability and credibility in the tax regime. You don't want to bring in elements of uncertainty."
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She emphasised that any exemption given goes to those who need it by law goes to someone who doesn't need it.
"By not increasing anybody's burden, we can get them the ability to plan better. So, we considered stability and predictability was more important."
Sitharaman said that the pandemic has brought in a bit of a drag in momentum towards making India a $5 trillion economy and the government believes predictable policies and consistency will help reach the $5 trillion goal.
"Must ensure we're not too disruptive in taxation, policies so that we reach the $5 trillion target," she said.
Also Read | FM exclusive on Budget 2022: Growth target at 8% achievable; hopeful of pickup in private investment
Income tax relief, possible standard deduction revision to account for more work for home expenses, higher limits for investments under Chapter VI-A (Section 80C, Section 80D) were being watched closely before the Budget 2022.
At present, those with an annual taxable income of up to Rs 2.5 lakh do not have to pay income tax. Those under Rs 5 lakh get a full rebate. Those earning between Rs 2.5 lakh and Rs 5 lakh are taxed at 10 percent, those earning from Rs 5-10 lakh are taxed 20 percent, and those above Rs 10 lakh are taxed 30 percent.
For full coverage of Union Budget 2022, click here.
(Edited by : Abhishek Jha)
First Published: Feb 2, 2022 6:56 PM IST
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