Saying the intention is to make the tax regime simpler, Union Finance Minister Nirmala Sitharaman on Tuesday said that no decision has been taken on when the old tax regime will be scrapped.
‘Can’t Say...': FM Nirmala Sitharaman On Whether Old Tax Regime Will Be Scrapped
Finance Minister Nirmala Sitharaman who earlier presented the budget for the seventh time announced several changes to the tax regime.
She clarified that the Centre has yet to make a final decision on whether it will be discontinued.
She also said the government’s primary goal is to simplify the tax system, but she stated that any decision regarding the potential end of the old tax regime will be made following a thorough review.
After presenting the Union Budget 2024 in Parliament, Sitharaman said: "Can't take a call on whether the old tax regime will be done away with... can only say the intention is to make the tax regime simpler.”
“Can't say if there will be a sunset on the old regime," she was reportedly quoted as saying.
Earlier, the Finance Minister Sitharaman who presented the budget for the seventh time announced several changes to the tax regime, including raising standard deduction from Rs 50,000 to Rs 75,000, and widening the tax slabs.
She said these tax revisions would allow salaried taxpayers to save as much as Rs 17,500 annually.
However, no changes were announced for the old regime. The new regime was introduced in 2020 and was made the default in last year's budget.
In her Budget 2024 proposals, Sitharaman unveiled several measures under the new tax regime aimed at providing relief to the middle class.
FM Sitharaman announced a 50 percent increase in the standard deduction, raising it from Rs 50,000 to Rs 75,000. Additionally, the deduction on family pensions for pensioners is set to rise from Rs 15,000 to Rs 25,000. These changes are expected to benefit approximately four crore salaried individuals and pensioners.
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