New Delhi:
Congress MP Shashi Tharoor on Saturday reacted to the Union Budget presented by Finance Minister Nirmala Sitharaman, questioning what would happen to those who are not employed. Mr Tharoor’s statements were in response to the revised tax slabs and rates under the new regime.
“I think, frankly, the applause you heard from the BJP benches was for the middle-class tax cut. We look at the details and that may be a good thing. So if you have a salary, you may be paying less tax. But the important question is, what happens if we don’t have a salary?” the Congress leader said.
“The fact is yes, I suppose if you have a job and you are earning Rs 12 lakh or less, there is every reason to be happy,” he added.
Mr Tharoor claimed the Finance Minister did not mention unemployment throughout her Union Budget speech.
“We didn’t even hear the words unemployment or inflation from the Finance Minister today. It was a mercifully short speech, but she didn’t use either of those words, which is not so merciful,” the Congress leader said.
Hitting out at the BJP government, Mr Tharoor claimed that they are using the Budget for the upcoming elections.
“If you are living in Bihar, and you are from an ally party, no doubt you will get the sops that will help you with your elections,” he said.
Revised slabs for new tax regime
According to the slabs revised under the new tax regime, those earning up to Rs 12 lakh annually won’t have to pay any income tax. This limit will be Rs 12.75 lakh for salaried taxpayers, counting Rs 75,000 of the standard deduction. So, those with Rs 12 lakh annual income will get a benefit of Rs 80,000, and those earning Rs 18 lakh will get a benefit of Rs 70,000, Ms Sitharaman told the Parliament.
But the catch is – the exemption can be earned only if a taxpayer takes relief under various sections of the Income Tax Act.
Ms Sitharaman said the new structure will substantially reduce taxes of the middle class and leave more money in their hands, boosting household consumption, savings, and investment.
Tax Slabs For FY25-26
Up to Rs 4 Lakh: Nil
Rs 4-8 lakh: 5%
Rs 8-12 lakh: 10%
Rs 12-16 lakh: 15%
Rs 16-20 lakh: 20%
Rs 20-24 lakh: 25%
Above Rs 24 lakh: 30%
Current tax slabs (FY24-25)
Up to Rs 3 lakh: Nil
Rs 3-7 lakh: 5%
Rs 7-10 lakh: 10%
Rs 10-12 lakh: 15%
Rs 12-15 lakh: 20%
Above Rs 15 lakh: 30%
