Union Finance Minister Nirmala Sitharaman lauded the government’s decision to income tax exemption offered to individuals earning up to ₹7.27 lakh per annum under the new tax regime.
Addressing scepticism expressed by various quarters, Sitharaman shed light on the meticulous examination undertaken by the government.
“So, we sat as a team and went into the details (to find out) at what stage you pay tax for every additional Re 1 you earn… (for instance) for ₹7.27 lakh, you don’t pay any tax now. It is only at ₹27,000 that the break-even comes. After that, you start paying tax,” the Finance minister said.
“You have a standard deduction of ₹50,000 also. Under the new scheme, the grievance was that there was no standard deduction. It is given now. We have brought in the simplicity in the paying rate and the compliance side,” Nirmala Sitharaman added.