Finance Minister Nirmala Sitharaman has opted for stability in the tax landscape, maintaining the existing tax system without introducing changes for employees. The status quo extends to income tax slabs, import/export duties, and the overall taxation structure. Notably, the anticipated increase in standard deduction from ₹50,000 to ₹75,000, declared in the previous budget, is slated to take effect from March 2024.
Despite the preservation of current tax policies, there is a significant development in direct taxes, which have witnessed a threefold increase. Sitharaman, while acknowledging this, extends congratulations to taxpayers for their resilience.
It’s crucial to highlight that the Finance Minister clarifies the decision to reduce corporate tax from 30% to 22%, emphasizing that it was part of the measures outlined in the last budget. Sitharaman categorically communicates that the direct and indirect tax systems remain untouched.
The context of this financial stance is important to consider, given the interim nature of the budget before elections. Sitharaman’s focus lies primarily on departmental allocations, with a restrained approach that refrains from introducing new proposals at this juncture.