Union finance minister Nirmala Sitharaman has said the government increased the income tax exemption from ₹7 lakh to ₹12 lakh to reduce the tax burden on people earning ₹1 lakh per month.During a media interaction, the finance minister was asked to explain the reason behind increasing the income tax exemption from ₹7 lakh to ₹12 lakh, and whether this move was prompted by slower-than-expected growth in incomes and salaries.
“The government feels that if someone earns Rs1 lakh per month on average, she should not have to pay tax. We are achieving this in two ways: first, by reducing slab rates to create a more uniform, gradually progressive structure; and second, by expanding the tax slabs to provide relief across income groups,” Nirmala Sitharaman was quoted as saying by reported.She said the government decided to provide extra benefits beyond slab rate reductions by introducing an additional rebate for some taxpayers, adding that the goal is for the money saved by taxpayers to flow back into the economy through consumption, savings or investment.
.png){kind=spacer}
