FM Sitharaman: PM Modi backed tax relief, bureaucrats needed convincing

Union Finance Minister Nirmala Sitharaman revealed that Prime Minister Narendra Modi was clear about providing tax relief in the Union Budget, but it took time to convince bureaucrats who were focused on revenue generation. Speaking to PTI, she stated that while the Prime Minister supported the move, the challenge was to ensure the ministry reached a comfort level before finalizing the proposal.

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Sitharaman emphasized that the government had been working towards simplifying direct taxes, reducing compliance burdens, and addressing taxpayers' concerns. She acknowledged the public sentiment regarding taxation, noting that many citizens expressed pride in being honest taxpayers but also sought relief.

Presenting her record eighth consecutive Budget on Saturday, Sitharaman announced significant tax relief for salaried individuals under the new tax regime. As per the revised slabs, individuals earning up to ₹12 lakh annually will not be liable to pay income tax. The revised tax rates include 5% for income between ₹4 lakh and ₹8 lakh, 10% for ₹8 lakh to ₹12 lakh, and 15% for ₹12 lakh to ₹16 lakh. Higher tax slabs include 20% for income between ₹16 lakh and ₹20 lakh, 25% for ₹20 lakh to ₹24 lakh, and 30% for earnings above ₹24 lakh.

The Budget aims to simplify taxation and provide financial relief while ensuring revenue sustainability.