“FM Sitharaman Announces Income Tax Exemption up to Rs 7.27 Lakh, Boosts MSME Sector in Udupi Visit”
Union Finance Minister Nirmala Sitharaman announced a significant tax benefit for the middle-class during her visit to Udupi. The Narendra Modi government has introduced income tax exemption for individuals earning up to Rs 7.27 lakh per annum. This move is part of the government’s commitment to provide relief to middle-class taxpayers and ensure that no section of society is left behind.
Union Finance Minister Nirmala Sitharaman announced a significant tax benefit for the middle-class during her visit to Udupi. The Narendra Modi government has introduced income tax exemption for individuals earning up to Rs 7.27 lakh per annum. This move is part of the government’s commitment to provide relief to middle-class taxpayers and ensure that no section of society is left behind.
Addressing concerns regarding those earning slightly more than Rs 7 lakh, Sitharaman clarified that for incomes up to Rs 7.27 lakh, no tax would be levied. The break-even point where individuals would begin paying tax is at Rs 27,000. Additionally, a standard deduction of Rs 50,000 has been introduced, addressing a grievance raised under the new tax scheme. The simplification of the tax rates and compliance process aims to provide ease and transparency to taxpayers.
Highlighting the government’s achievements, Sitharaman emphasized the substantial increase in the budget allocation for Micro, Small, and Medium Enterprises (MSME). The budget has risen to Rs 22,138 crore for 2023-24, a seven-fold increase compared to Rs 3,185 crore in 2013-14. This significant allocation reflects the government’s commitment to empowering the MSME sector.
Sitharaman also highlighted the success of the ‘Public Procurement Policy for Micro and Small Enterprises,’ wherein 33% of total procurement made by 158 Central Public Sector Enterprises has been from MSMEs. This achievement marks the highest-ever procurement from MSMEs to date. The launch of the Trade Receivables Discounting System (TReDS) has further facilitated liquidity for MSMEs, ensuring they do not face financial crunches due to delayed payments.
The Finance Minister also praised the Open Network for Digital Commerce (ONDC), a public platform comparable to global e-commerce giants, which has enabled MSMEs to access a larger customer base. Sitharaman emphasized that India’s efforts to improve the ease of doing business have been recognized globally, with the country’s ranking in the World Bank’s Ease of Doing Business Index soaring from 142 in 2014 to 63 in 2019. The government has actively worked to reduce compliance burdens by repealing archaic laws and over 39,000 compliances, contributing to a favorable business environment.
During her visit, Sitharaman inaugurated the Common Facility Centre (CFC) at the Indian Institute of Gems and Jewellery (IIGJ) in Udupi. The facility, funded through her MPLADS and with support from the Gem & Jewellery Export Promotion Council and the National Institute of Design, will provide training in handcrafted jewelry making to the region’s youth.
As Sitharaman continues her visit, her announcements have been met with enthusiasm from the local community. The tax benefits and government initiatives highlight the commitment to uplift the middle-class and empower the MSME sector, paving the way for economic growth and prosperity.
In conclusion, the income tax exemption for those earning up to Rs 7.27 lakh per annum, along with other tax benefits and initiatives, reflects the government’s dedication to supporting the middle-class and bolstering the MSME sector. These measures aim to create a favorable business environment, stimulate economic growth, and ensure inclusive development across the nation.
Sources By Agencies
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