New Delhi: Union Finance Minister Nirmala Sitharaman on Sunday said Prime Minister Narendra Modi was clear about the need for tax relief in Budget 2025. According to the Finance Minister Modi had supported the income tax rebate. She said Modi supported tax cuts but that it took time to convince bureaucrats, reported the India Today. “We have heard the voice of the middle class,” she added.
The FM was asked what convinced PM Modi to implement tax reforms in an interview to India Today. To this, she said, “The question should be how much it takes for me to convince the ministry and the boards. It is not so much about the PM. The PM was very clear that he wanted to do something. It was for the ministry to reach a comfort level and then proceed with the proposal.”
Sitharaman insisted that her government’s objective in this Budget was to extend support to the middle class. “Our focus is to increase consumption. The government always recognised honest taxpayers. Our aim was to provide support to the middle class. Those earning Rs 1 lakh need tax relief,” she told NDTV.
She explained the rationale behind tax relief in an interview to DD News. “The priority is returning money to the taxpayers who are the backbone of the economy. With PM Modi’s guidance, the goal is to give relief to those who contribute to the country’s growth, including MSMEs, to further empower them,” she added.
The government had been working for some time to simplify direct taxes, focusing on reducing the compliance burden and addressing taxpayers’ concerns, she told the PTI.
“Wherever I travelled, the common sentiment was, ‘We are proud and honest taxpayers. We want to continue serving the country by fulfilling our tax obligations. But would you consider what can be done for us?'” she told PTI.
The Finance Minister quoted Abraham Lincoln to describe the Budget as “by the people, for the people, of the people.”
While presenting Bdget on Saturday, Sitharaman announcedtax relief measures for salaried individuals. Under the new tax regime, those earning up to Rs 12 lakh annually will not have to pay income tax. The revised tax slabs set the rate at five per cent for income between Rs 4 lakh and Rs 8 lakh, 10 per cent for income between Rs 8 lakh and Rs 12 lakh, and 15% for income between Rs 12 lakh and Rs 16 lakh. The tax rate is 20% for income between Rs 16 lakh and Rs 20 lakh, 25% for income between Rs 20 lakh and Rs 24 lakh, and 30 per cent for income above Rs 24 lakh.
