Income tax exemption for earners up to Rs7.27 lakh: Sitharaman

Finance Minister Nirmala Sitharaman commended Prime Minister Narendra Modi's leadership and highlighted the government's efforts to provide tax benefits to the middle class. Under the new tax regime, the government offers income tax exemption for individuals earning up to ₹7.27 lakh per annum. Addressing skepticism surrounding this decision, Sitharaman explained that the break-even point for tax payment occurs at ₹27,000, emphasizing the simplicity and fairness of the revised tax structure. Additionally, she mentioned the introduction of a standard deduction of ₹50,000, addressing a grievance raised by taxpayers under the new scheme.

Sitharaman further underscored the significant increase in the budget allocated to the Micro, Small, and Medium Enterprises (MSME) sector. The budget for the MSME sector soared to ₹22,138 crore for 2023-24 compared to ₹3,185 crore in 2013-14. She highlighted the success of the 'Public Procurement Policy for Micro and Small Enterprises,' which led to 33 percent of overall procurement from 158 Central Public Sector Enterprises being sourced from MSMEs, marking the highest proportion to date.

The Finance Minister also mentioned the introduction of the Trade Receivables Discounting System (TReDS) platform, which ensures that MSMEs and other corporations do not face liquidity crunches due to non-payment by buyers. Furthermore, she highlighted the Open Network for Digital Commerce (ONDC), enabling the MSME sector to tap into a large consumer base, and she applauded India's public platforms, comparing them to global e-commerce giants like Amazon. Sitharaman noted India's improved ranking in the Ease of Doing Business Index, climbing from 142 in 2014 to 63 in 2019.

In an effort to reduce the compliance burden, the government repealed over 1,500 outdated laws and streamlined approximately 39,000 compliances. Sitharaman also emphasized the decriminalization of the Companies Act, marking a significant step towards promoting ease of doing business in the country.

Overall, the Finance Minister's remarks showcased the government's commitment to providing tax relief to the middle class and supporting the growth and development of the MSME sector through various initiatives and reforms.