Nirmala Sitharaman on Budget 2024: "I want to relieve the middle class, but I have limitations too"

Finance Minister Nirmala Sitharaman stated that the Union Budget 2024 aims to provide relief to the middle class despite certain limitations. In an interview with, she expressed her desire to reduce the tax burden on the middle class by increasing the standard deduction rate from ₹50,000 to ₹75,000. This change is part of a broader effort to reduce the tax rate within the new tax regime, which offers lower tax rates compared to the old system.

Sitharaman highlighted the government's approach to balance tax relief for the middle class while increasing the tax liability for the high-income class. "I want to relieve the middle class, but I have limitations too. I am also from the middle class and understand their problems," she said.

The new tax regime under Budget 2024 proposes changes to the income tax slabs, benefiting individuals with taxable incomes up to ₹10 lakh. There is no change in the basic exemption limit in both the old and new tax regimes. Under the new regime, taxable incomes up to ₹7 lakh are exempt from tax. The proposed tax slabs are as follows:

₹0 - ₹3,00,000: 0%

₹3,00,001 - ₹7,00,000: 5%

₹7,00,001 - ₹10,00,000: 10%

₹10,00,001 - ₹12,00,000: 15%

₹12,00,001 - ₹15,00,000: 20%

Above ₹15,00,001: 30%

Before the implementation of GST, different states imposed their own taxes on essential items, leading to varied prices across the country.