Affirming that the union Budget astutely balancesthe requirement of development imperatives within the limits of fiscal prudence, Finance Minister Nirmala Sitharaman said the new tax regime, which offers a rebate on annual income of up to Rs 7 lakh, will leave higher disposable income in the hands of people.
Sitharaman hailed the government’s economic policies during the reply to the Budget 2023 debate in Lok Sabha and asserted despite of global slowdown India is still the fastest-growing major economy.
The government chose capex route to revive the economy as it has a great multiplier effect, she added.
The finance minister said the new tax regime announced in the Budget is “very attractive” as the tax exemption limit has been hiked to Rs 3 lakh, from Rs 2.5 lakh earlier. Besides, a standard deduction of Rs 50,000 too has been allowed under the scheme.
This new tax regime will benefit the majority of middle-class taxpayers, she said, adding that the rebate has been provided on an income of up to Rs 7 lakh.