What did middle-class gain in Budget 2024? Nirmala Sitharaman’s response

Mangalore Today News Network / India Today

New delhi, July 26, 2024: Union Finance Minister Nirmala Sitharaman on Thursday said that the government made changes in the tax slabs in the recently-tabled Budget to benefit the middle-class and employed citizens of the country.

Speaking exclusively to Aaj Tak, the Finance Minister said that the standard deduction was increased from Rs 50,000 per annum to Rs 75,000 to extend benefits to the salaried class.

"The rebates in tax rates in the recent Budget were made to extend benefits to the middle class. When tax slabs are reduced, it even benefits those who have a high income.

"A high income earner has to pay no tax for Rs 7 lakh of his total income. He/she pays tax on the remaining amount of the total income. This is how the normal taxation system works. The standard deduction was increased from Rs 50,000 to Rs 75,000 so that salaried individuals could get the benefit," Sitharaman said.

The Finance Minister also pointed out that the government has announced a subsidised education loan of up to Rs 10 lakh and a rebate in affordable housing for aiding the middle class.

"We have introduced a subsidised education loan of up to Rs 10 lakh for the children of the middle-class. Apart from this, we have also announced subsidised rates of interest in affordable housing loans. We have also increased the amount for the Liberalised Remittance Scheme (LRS) for people who want to go aborad," she added.

Sitharaman also said that the government aims to benefit the middle-class through various schemes. "We are bringing in various scheme to benefit the middle-class. Focusing on one particular scheme or aspect is not correct. We have to work in various ways to reach them. They (middle-class) should get more, but only if I can give it," the minister added.

While tabling her seventh consecutive Budget on Tuesday, Sitharaman announced a marginal income tax relief for the middle class by raising standard deduction -- a flat deduction from total salary earned by an employee in a year before calculating the applicable income tax rate -- by 50 per cent to Rs 75,000 and tweaked tax slabs for taxpayers opting for the new income tax regime.

As per the proposal, a 5 per cent tax will be levied on income between Rs 3-7 lakh, 10 per cent between Rs 7-10 lakh and 15 per cent for Rs 10-12 lakh.