Major Tax Break: Middle Class Celebrates as Union Budget Removes Income Tax for Earnings Up to Rs 12 Lakh
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Synopsis
Finance Minister Nirmala Sitharaman's 8th Union Budget introduces a tax exemption for individuals earning up to Rs 12 lakh, marking a significant relief for the middle class. This budget aims to stimulate growth in key sectors such as Agriculture, MSMEs, Investment, and Exports.
Key Takeaways
- Tax Exemption: No income tax for earnings up to Rs 12 lakh.
- Growth Focus: Emphasis on Agriculture, MSMEs, Investment, and Exports.
- Middle Class Relief: Positive reactions from middle-class earners.
- Reduced Tax Slabs: New tax structure introduced.
- Employment Opportunities: Potential boost for the handicraft sector.
New Delhi, Feb 1 (NationPress) In a groundbreaking announcement, Finance Minister Nirmala Sitharaman unveiled her 8th consecutive Union Budget on Saturday, concentrating on fostering growth across four pivotal sectors: Agriculture, MSMEs, Investment, and Exports. A significant relief for taxpayers came as Sitharaman declared that individuals earning up to Rs 12 lakh per year will be exempt from income tax under the new system. The middle class has welcomed this decision as a progressive move towards financial relief and growth.
In a conversation with IANS, fashion designer Manjusha Shrivastava shared her positive outlook, emphasizing the advantages for the handicraft industry and its capability to generate employment. Although she noted that announcements specifically for women were scarce, she believes the overarching growth strategy would be beneficial for everyone, including women.
Subramanyam Harda, President of the Bangalore Hotel Association, highlighted the relief provided to middle-class earners, particularly due to the lower tax brackets and advantages for salaried individuals. Despite inflation being a lingering concern, he is optimistic that these changes will alleviate financial burdens for working families.
Vartika Shukla, a businesswoman, referred to the Rs 12 lakh tax exemption as the most commendable aspect of the budget, along with reduced taxes on essential medications for severe health conditions. However, she expressed her disappointment regarding the insufficient emphasis on women’s issues, contrary to initial expectations.
Vikas Kumar, another middle-class individual, expressed his excitement over the Rs 12 lakh exemption, labeling it a “bumper deal” and a long-awaited relief. Although he remains wary of inflation, he is confident that the additional savings will serve as a much-needed boost for families.
Overall, the budget has ignited hope and enthusiasm among the middle class, with many viewing it as a constructive step towards financial independence and economic growth.
On Saturday, Finance Minister Nirmala Sitharaman confirmed that there will be no income tax for individuals with annual incomes of up to Rs 12 lakh, and Rs 12.75 lakh for salaried taxpayers (including the standard deduction).
The revised tax structure under the new regime is as follows: Rs 0-4 lakh (zero tax), Rs 4-8 lakh (5%), Rs 8-12 lakh (10%), Rs 12-16 lakh (15%), Rs 16-20 lakh (20%), Rs 20-24 lakh (25%), and above Rs 24 lakh (30%).
