FM Nirmala Sitharaman incurred that there would be no reduction in tax rates under the old regime, addressing calls via assessees for identical rate reduces both old and new regimes.
The minister said that the government does not force anyone to switch from the old to the new tax regime.
What Amount Do I Required to Pay?
She mentioned that we are not forcing anyone to proceed emphasizing that over 78% of assessees have chosen it before for the new regime. To ease the direct taxation and facilitate compliance for the people the system was made.
The rates have been decreased in the new regime and the standard deduction has been surged to Rs 75000 to lessen the middle-class tax load. But the old regime stayed unrevised in the same concern.
FM added that we carried the standard deduction into the new regime post listening to what people desired.
Even after navigating these certain middle-class taxpayers have shown concerns claiming that the rate cuts that have been introduced in the new system must be extended to the old regime.
What FM Nirmala Sitharaman Says?
It was considered by the Sitharaman that such sentiments however repeated the opinion of the government. “I understand the view that some rate reductions in the new system should apply to the old tax regime, but we have kept the changes specific to the new scheme,” she expressed.
FM stresses that the objective of the government is to facilitate the tax system for all along with the middle class to ease direct taxation subsequently.
FM added that the government has been functioning to ease direct taxation since 2019 which is the reason for the introduction of the new regime with lower rates. We furnish the chance to the assessees that if they chose the exemptions, they can remain with the old scheme.
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Indeed she remarked that while the new scheme propose no exemptions therefore the government afterwards added the standard deductions to accommodate the requirements of the assessee. In the budget of July, we reviewed the same and decreased the rates for the middle class, and indeed surged the standard deduction, she quoted.
